German chemical giant Bayer has announced a proposed settlement worth $7.25 billion to end thousands of lawsuits alleging the carcinogenicity of the herbicide Roundup. Simultaneously, President Donald Trump signed a decree recognizing glyphosate production as critical to US national security. This decision, based on regulations from the Korean War era, aims to protect the national food supply chain from foreign influences.

Billion-Dollar Settlement Offer

Bayer proposes $7.25 billion to end tens of thousands of lawsuits regarding claims of the carcinogenicity of the Roundup product.

Presidential Decree by Trump

President Donald Trump recognized glyphosate production as critical to US national security under the Defense Production Act.

Financial Market Reaction

Shares of Bayer AG saw a sharp rise followed by a decline, reflecting investor skepticism about the durability of the proposed solution.

The Bayer conglomerate has made another attempt to definitively end the multi-year legal battle in the United States. The proposed settlement amounts to $7.25 billion and is intended to cover both current and future claims from individuals with non-Hodgkin's lymphoma who link their illness to the use of the Roundup preparation. This strategy aims to unlock the company's stock market potential, which has been struggling with enormous financial and reputational burdens since the acquisition of Monsanto in 2018. However, investors reacted with caution, leading to sharp fluctuations in the share price on the Frankfurt stock exchange. A breakthrough event in the political context is the decision by Donald Trump, who signed a decree under the Defense Production Act. This document recognizes glyphosate and phosphate mining as critical for US food security. The White House argues that the only domestic producer of these substances is Monsanto, owned by Bayer, and dependence on foreign suppliers poses a strategic threat. The decree is to provide the company with legal protection and production continuity, constituting significant support for the German conglomerate in its clash with the American judicial system. The glyphosate dispute intensified in 2015 when the International Agency for Research on Cancer classified it as a probable carcinogen, paving the way for mass lawsuits against Monsanto. Despite management's optimism, analysts point to uncertainty regarding final court approval of the settlement. Previous settlement attempts were rejected due to insufficient protection for future plaintiffs. The current proposal envisages payouts spread over 21 years, which is to minimize the immediate shock to the group's financial liquidity. At the same time, it was emphasized that the new regulations will not affect the availability of herbicides outside the US market, reassuring farmers in Europe and other parts of the world. „The production of glyphosate-based herbicides is essential for the functioning of modern agriculture and protecting our borders from food supply instability.” — Donald Trump Settlement Costs and Bayer: 2020 settlement: 10.0, New settlement proposal: 7.25, Expenditures to date: 13.0 Key Dates for Bayer and Glyphosate: June 7, 2018 — Finalization of Bayer's acquisition of Monsanto; February 17, 2026 — Announcement of the new settlement proposal; February 18, 2026 — Signing of the decree by Donald Trump Emphasizes the threat to public health and corporate lobbying that led to the herbicide being recognized as a strategic commodity for defense. | Highlights the importance of food security, protection of American farmers, and the need to end the costly legal battle for market stability.

Mentioned People

  • Donald Trump — President of the United States, who signed a decree protecting glyphosate production as an element of national security.
  • Bill Anderson — CEO of Bayer AG, seeking to resolve the company's legal issues in the US.