Bayer AG (BAYN.XE) said Friday it sold a 6.9% stake in polymers company Covestro AG (1COV.XE) for 1 billion euros ($1.18 billion), and will revise its 2017 outlook next month to account for the resulting changes in its financial reporting.
The German pharmaceutical and chemicals company said it now holds 24.6% of Covestro, and has ceded control of the company.
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Bayer will report Covestro as a discontinued operation in the third quarter. For continuing operations, Bayer's key data--such as sales or earnings before interest and taxes--will be adjusted retrospectively to exclude Covestro's contributions.
Bayer will adjust its group outlook accordingly, with the new guidance to be published Oct. 26 as part of its third-quarter report
In addition to the remaining stake, Bayer Pension Trust continues to hold 8.9% in Covestro, Bayer said.
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(END) Dow Jones Newswires
September 29, 2017 02:10 ET (06:10 GMT)