LEVERKUSEN, Germany (Dec. 7) — Bayer A.G. will take an extraordinary provision of about $330 million in the fourth quarter to cover the costs of anti-trust settlements with plaintiffs in the U.S. related to price-fixing cases involving rubber and rubber chemicals.
Lanxess A.G., the polymers and chemicals business spun off from Bayer a year ago, will take an $83-million charge against its earnings to cover its obligation to reimburse Bayer for 30 percent of costs for legal proceedings and tax impacts, Lanxess said. The 30-percent reimbursement clause — up to a maximum of $120 million, but not more than $60 million per year — was part of the spinoff agreement, Lanxess said.
In a statement, Bayer said it has "reached agreements in principle to settle a number of the civil antitrust actions claiming damages" pending against it in the U.S.
"The financial risk associated with the remaining actions is currently not quantifiable," Bayer said, while adding it expects that "in the course of the remaining governmental proceedings and civil actions, additional expenses will become necessary that may also be of material importance to the company."
The timing of the payments to be made is still unknown, Lanxess said.
In its statement, Bayer said it "deeply regrets the violations of law" and has cooperated with authorities in investigating the anti-competitive behavior. Bayer said it adopted a global program for legal compliance and corporate responsibility in 1999 and tightened it in 2004.