German Supreme Court Upholds $2B Bayer Arbitration Award in BASF Dispute
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TL;DR
- German Supreme Court declared the appeal inadmissible.
- The decision upholds a $2 billion arbitration award favoring Bayer.
- The dispute concerns a post-M&A (merger and acquisition) arbitration with BASF.
- The ruling concludes a long-running arbitration-related challenge.
Overview
Germany's Supreme Court (BGH) has rejected an appeal challenging a $2 billion arbitration award granted to Bayer in a dispute with BASF related to a post-merger and acquisition issue. The court's decision finds the appeal inadmissible, allowing the arbitral award to stand.
What Happened
An appeal was filed to Germany's Supreme Court (Bundesgerichtshof, BGH) seeking to overturn a $2 billion arbitration award previously issued in favor of Bayer following a post-M&A dispute with BASF.
The appeal raised procedural issues, but the BGH ruled that the appeal was inadmissible.
As a result, the original arbitration award favoring Bayer remains in effect.
Representation for Bayer included Gleiss Lutz in the arbitration proceedings and Sullivan & Cromwell and Jones Day in earlier matters.
Context
The arbitration case arose from merger and acquisition activities involving Bayer and BASF. Specifics concerning the underlying transaction or dispute were not further detailed in the report.
With the BGH's decision, the enforcement and finality of large arbitration awards in Germany comes into focus, though the ruling itself was described as procedural.
Why It Matters
- The decision confirms the validity and enforceability of a significant $2 billion arbitral award in Germany.
- The outcome may be referenced in future procedural challenges to large arbitration awards within Germany.