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The chemical and pharmaceutical company Bayer has reached an out-of-court settlement of $ 12.07 billion (€ 10.715 billion) to close most of the litigation in which it was involved due to its purchase of Monsanto in 2018, as announced by the company. German this Wednesday in a statement.

In this way, the total cost of the acquisition of Monsanto has risen to exceed 75,000 million dollars (66,615.7 million euros) , since the purchase amount of the company was 63,000 million dollars (55,927.1 millions of euros).

Since the purchase of the US firm closed , Bayer's shares have plunged 29.3% . Its market capitalization at the close of Wednesday was just over 72,000 million dollars (63,951.1 million euros), which is why it is below the acquisition cost of Monsanto.

Most of the agreement will be used to close 75% of the 125,000 lawsuits opened against Bayer for the potential carcinogenic effect of the herbicide RoundUp , formerly owned by Monsanto. The German firm expects to pay between 8,800 and 9,600 million dollars (7,816.9 and 8,527.6 million euros) to the plaintiffs, although it will provision another 1,250 million dollars (1,110.4 million euros) for another possible agreement that ends the rest of the demands.

In this way, the plaintiffs will receive, on average, just over $ 100,000 each , against the multimillion-dollar sanctions that the US Justice had been imposing in the few cases that have gone to trial.

This agreement on RoundUp has been approved by the board of directors and the supervisory board of Bayer, although it has to receive the approval of the American Justice. The company has underlined the agreement does not contain any admission of guilt or crime.

"First and foremost, the RoundUp deal is the right action at the right time for Bayer to close a long period of uncertainty," said the company's CEO, Werner Baumann . "It solves a large part of the open cases and puts in place a clear mechanism to manage future litigation risks," he added.

For Bayer's chief executive, the deal is "financially reasonable" because of risks to the company's reputation and its multi-year litigation accounts. Baumann hopes that this agreement "will return the conversation about the safety and usefulness of glyphosate-based herbicides to the scientific and regulatory arena."

On the other hand, Bayer has also reached an agreement to close litigation for crop damage due to the use of the Dicamba herbicide worth 400 million dollars (355.3 million euros). However, the plaintiffs will have to provide evidence of the damage to the crops and show that it is due to Dicamba to access the company's compensation.

Likewise, the German firm has also reached a series of agreements to close the lawsuits against Monsanto for the contamination of waters by the use of polychlorinated biphenyls (PCBs) , which Bayer manufactured between 1935 and 1977. For these cases, Bayer will pay 820 million dollars (728.4 million euros).

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