Bayer's $7.25B glyphosate settlement sends DAX soaring on Tuesday
The DAX closed higher on Tuesday, boosted by strong gains in Bayer shares. The pharmaceutical giant's stock surged over 7% after a major legal zoom settlement. Most of the index's components also ended the day in positive territory.
Bayer's shares jumped 7.35% to €49.32, making it the DAX's best performer. The rise came after its subsidiary Monsanto agreed to a settlement of up to $7.25 billion. This deal resolves current and future lawsuits linked to glyphosate, a controversial herbicide.
As part of the agreement, Bayer increased its legal provisions from €7.8 billion to €11.8 billion. The news pushed the company's stock up 7.15% for the day, adding 24 points to the DAX's overall gain. Over the past year, Bayer's shares have climbed 34.81%, far outpacing the broader index.
The DAX itself closed 0.8% higher at 24,998 points. Earlier in the session, it briefly touched 25,020 but failed to hold above the 25,000 mark. Out of 40 listed stocks, 27 finished the day in positive territory.
Real estate firm Vonovia gained 3.82% as interest rate expectations stabilised. Tech company Infineon also rose 3.16%, supported by a rebound in the semiconductor sector. Despite a slow start to the week, the index recovered ground by the end of trading.
Bayer's legal zoom settlement drove its shares to the top of the DAX, boosting the index's performance. The broader market saw widespread gains, though the DAX remained just below the 25,000-point threshold. The settlement resolves long-standing litigation but comes at a significant financial cost for the company.
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