Bayer CEO Werner Wenning announced his resignation yesterday proves that the acquisition of Monsanto could go down as one of the worst corporate acquisitions in the history of economics. Wenning will be sticking around until April. He will be receiving a golden parachute once the fiscal year is complete. He needed to bail on Bayer because the stock has dropped to under $20 a share and the market value of Bayer took a $30 billion hit.
Monsanto has over 40,000 lawsuits pending due to consumers from all over the world contracting cancer from using the weed killer RoundUp. However, things were beginning to look bright for Bayer as they were working on agreeing upon a $10 billion settlement.
The issue that forced Wenning to resign is that Monsanto is about to face another slew of legal cases due to the dicamba drift. Dicamba is a pesticide that farmers have been using on their genetically-modified crops. The problem that occurs is that the usage of dicamba drifts into other fields. The drifting pesticide destroys all crops that are affected.
The new CEO will have a tough task ahead of him, but the first thing that he needs to do is to find a way to dump Monsanto.