Bayer AG is restructuring its operations in the United States by spinning off its glyphosate business into a newly formed subsidiary named Ruveon.
The German chemical and pharmaceutical giant established the separate entity to bundle its US activities related to the herbicide, which is the active ingredient in its controversial Roundup product line.
The move is designed to optimize the management of the business while isolating it from the parent company's core operations.
The restructuring follows a period of intense legal and financial pressure on Bayer stemming from thousands of lawsuits alleging that Roundup causes cancer.
Investors have long sought clarity on how the company intends to cap its exposure to these liabilities, which have weighed on the stock and complicated its strategic outlook.
By creating a distinct legal entity, Bayer appears to be pursuing a path toward ring-fencing the remaining legal and operational risks associated with the product in the US market.