A stake in a growing business to secure a balance sheet still under pressure. This is the path chosen by Bayer, which is opening up the capital of its contraceptives business to one of the largest global investors, Apollo Global Management, without giving up control of the division. The 3 billion euro deal comes at a delicate time for the German group, engaged in managing the economic burden of litigation related to Roundup and redefining its industrial structure.
THE 3 BILLION EURO DEAL
Bayer has sold to Apollo Global Management a minority stake in its long-acting reversible contraceptives (LARC) business for 3 billion euros. The activities will be merged into a new entity jointly owned by funds managed by Apollo and its affiliates, while Bayer will retain majority ownership, operational control, and consolidation of the company in its financial statements.
The stake sold has not been made public, nor have the financial details of the new structure been disclosed. For Bayer, the operation represents a financing solution that allows it to enhance a profitable pharmaceutical business without proceeding with a full sale.
A PROFITABLE PHARMACEUTICAL BUSINESS
The LARC contraceptives segment, according to the Financial Times, is one of the fastest-growing segments within Bayer’s pharmaceutical division. In 2025, in fact, sales of the product line reached approximately 1.4 billion euros, with a 12.5% increase on an adjusted basis for currency effects and portfolio changes.
The division includes devices such as Mirena, Kyleena, and Jaydess. Mirena, in particular, is a hormonal intrauterine device that can provide up to eight years of contraception.
THE NEED TO STRENGTHEN THE FINANCIAL STRUCTURE
The capital raise comes at a time when Bayer is facing a significant increase in financial demands related to litigation in the United States over the herbicide Roundup. The group is seeking to reduce pressure on the balance sheet after years of lawsuits stemming from the acquisition of Monsanto in 2018, the company that owned the product before its integration into Bayer.
In February, Bayer increased provisions for legal expenses to 11.8 billion euros and announced a collective agreement worth 7.25 billion dollars to manage future claims related to Roundup. The company explained that the immediate need would be covered through an 8 billion dollar bank credit line, while long-term financing would be secured through debt and hybrid capital instruments.
THE ROUNDUP ISSUE AND THE GROUP REORGANIZATION
The Roundup case remains the main pressure point for Bayer. The company has already spent over 10 billion dollars on litigation related to allegations that glyphosate, the active ingredient in the herbicide, is linked to cancer risk. Bayer denies the allegations and maintains, based on regulatory authorities’ assessments, that the product is safe when used as directed.
In this regard, the company has meanwhile transferred the US glyphosate business to a wholly owned subsidiary, Ruveon, aiming to create a more agile and focused business for the American herbicide market, while keeping it within the group.
The decision came after a favorable ruling by the United States Supreme Court, which represented an important victory for Bayer in the long legal journey related to Roundup.
APOLLO AND THE PRIVATE CAPITAL STRATEGY
The agreement with Bayer, states Bloomberg, fits into Apollo Global Management’s strategy of providing financial solutions to large industrial groups through private equity investments. In recent years, the US manager has participated in multibillion-dollar deals with companies such as Intel, Electricité de France, and Vonovia.
In 2026, Apollo also led a 35 billion dollar financing package for Anthropic, aimed at developing infrastructure for artificial intelligence. President Jim Zelter stated that the company could allocate up to 100 billion dollars in funding to Germany over the next decade.
In Europe, Apollo has already built a significant presence through infrastructure investments, including a 6.5 billion dollar commitment to Ørsted’s offshore wind project in the United Kingdom and a 3.2 billion euro investment in RWE’s German electricity grid.
ANALYSTS’ HYPOTHESES ON BAYER’S FUTURE
The deal on the contraceptives business comes as investors watch possible developments in the structure of the German group. Deutsche Bank analysts have indicated that, with the gradual containment of Roundup litigation and improvement in operating results, a separation of Bayer would be “a matter of when and how, rather than if.”
Among the hypotheses considered by analysts are a spin-off of the agricultural sciences business, excluding glyphosate, and a possible sale of the consumer health division.
