Bayer’s due diligence procedures for M&A transactions are appropriate, special audit confirms
Mar. 27, 2020
“Bayer allowed me deep insight into the organization and provided extensive documentation,” said Böcking. “Based on a careful and thorough assessment and evaluation of the documents submitted to me and the information I was given, I conclude that the specifications, requirements and reporting lines that I reviewed are appropriate for material M&A transactions.”
In Bayer’s opinion the outcome of the voluntary special audit attests to the company’s very high standards. “Prof. Böcking’s report on Bayer’s M&A procedures provides impressive proof that our company works with maximum professionalism and care,” said Supervisory Board Chairman Werner Wenning.
In addition to the special audit itself, Böcking made various recommendations for further improving the existing due diligence procedures and reporting lines. Bayer has picked up on these recommendations and implemented some of them already.
Bayer had reached agreement with Prof. Christian Strenger, a stockholder of the company, that a voluntary special audit be performed. The resulting report by Prof. Böcking concludes the voluntary special audit and is available to read on the Bayer website.
Also available there are the more detailed statements issued by lawyer Dr. Ralph Wollburg of Linklaters and Prof. Dr. Mathias Habersack of the Ludwig Maximilian University of Munich about their legal opinions in which they concluded that Bayer’s Board of Management had acted with due care in every respect and in compliance with its obligations under stock corporation law when making its decisions regarding the Monsanto acquisition. Also posted on the company’s website is the independent review of opinions obtained from a leading U.S. law firm prior to the acquisition of Monsanto concerning potential litigation risks associated with glyphosate and the Roundup™ products containing this active ingredient. In his review, U.S. lawyer James B. Irwin comes to the conclusion that these opinions thoroughly address and appropriately assess potential risks in accordance with professional standards.
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