The Bayer board has decided against an initial public offering

Bayer will spin off Lanxess to existing shareholders next January rather than use the IPO route to independence. The new company has operated separately since the beginning of this month.

The Bayer board made the decision at a meeting today and will now seek shareholder approval at an Extraordinary Stockholders’ Meeting in November. Details of how the spin off will be carried out will be made public in advance of this meeting.

“In the current stock market climate, a spin-off to Bayer stockholders is the best route to a listing for Lanxess,” said Bayer chairman Werner Wenning.

Lanxess holds Bayer’s synthetic rubber, chemicals and a number of polymer activities including ABS, nylon and PBT. Bayer’s polyurethane and polycarbonate businesses are remaining with the Leverkusen-based group under the Bayer MaterialScience banner.