Bayer On Monsanto Bid: Push Toward Digital Farming

Bloomberg’s Adam Santariano reported on Bayer AG (ADR) BAYRY's high-tech-strategy behind its $62 billion Monsanto CompanyMON bid.

“German chemical company Bayer cited the growth in… digitally assisted farming as a key reason for its $62 billion bid which has become a leading provider of analytics used by growers” said Santariano.

Bayer’s already high-tech product line, including self-driving tractors, was looking to further its technological advantage. Monsanto, being Bayer’s first choice, was at the “forefront of digital farming” said Bayer Chief Executive Officer Werner Baumann.

Related Link: Takeover Talk A Help To Wide-Moat ETFs

“Adoption of digital tools comes amid concerns that food production isn’t keeping up with the world’s appetite. Crop yields have remained relatively flat in recent years, even as demand is increasing because of population growth and the rising middle class in developing nations such as China” according to Bloomberg.

At the time of writing, Monsanto Company was trading down 1.05 percent at $108.05, while ADRs of Bayer were up 0.49 percent at $100.39.