LEVERKUSEN, Germany (Nov. 7)—Bayer A.G. plans to spin off its chemicals and rubber businesses into a separately traded public company, by early 2005 at the latest, the company announced Nov. 7. Bayer said the move will allow it to focus on its core businesses of health care, nutrition and innovative material activities; the latter includes polyurethane. The spinoff, provisionally called NewCo, will supply basic, specialty and fine chemicals, solid rubber and rubber chemicals for the rubber and tire industries, and various engineering plastics, Bayer said. The company will have sales of nearly $6.5 billion and 20,000 employees. Following the spinoff, Bayer will have three operating subgroups, Bayer HealthCare, Bayer CropScience and Bayer MaterialScience. Axel Claus Heitmann, currently a member of the executive committee of Bayer Polymers and formerly general manager of the rubber business group, has been named CEO designate of the NewCo.
Bayer to spin off rubber business into new company
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