Back to top

Monsanto (MON) Affiliate Divests Precision Planting Business

Read MoreHide Full Article

Monsanto Company’s (MON - Free Report) business subsidiary — The Climate Corporation — recently divested its Precision Planting LLC equipment business to AGCO Corporation (AGCO - Free Report) , for an undisclosed amount.

Inside Story

In 2015, Monsanto had agreed to sell its Precision Planting business to Deere & Company (DE - Free Report) , for nearly $190 million. However, The Justice Department prosecuted to block the deal last year, due to the heightening competition in the global seed trails and agricultural chemical industry.

In late July 2017, Climate Corporation inked an agreement with AGCO to spin-off its Precision Planting business. The deal’s success ensures that Precision Planting LCC will complement AGCO’s equipment portfolio and assist in the development of advanced crop-yield enhancing products for farmers in the near term.  

Climate Corporation is also in the process of reinforcing its global-data connectivity contract with AGCO. This agreement will ensure sound connectivity between Climate Corporation’s FieldView digital agro-platform with AGCO’s equipment. The deal will likely increase farmers’ accessibility to useful data, which will help measure the outcomes of agronomic decisions and managing inputs.   

Existing Scenario

There is an ongoing trend of consolidation in the contemporary seed, trails and agricultural chemical industry. This drift has been making matters worse for Monsanto, intensifying competitive pressure for the company. Furthermore, dismal pricing conditions in the agricultural market and foreign currency translation impact remain major causes of concern.

Nevertheless, elevating demand for crop-yield enhancing products, strong innovation and the success of Bayer AG’s (BAYRY - Free Report) buyout deal, likely to close by the end of this year, are anticipated to bolster Monsanto’s top- and bottom-line performance over the long run.

Monsanto’s shares have yielded a return of 9.8% compared with 7.5% growth recorded by the industry, in a year’s time.

The company currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank  (Strong Buy) stocks here.

4 Surprising Tech Stocks to Keep an Eye On

Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.

See Stocks Now>>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Bayer AG (BAYRY) - free report >>

Deere & Company (DE) - free report >>

AGCO Corporation (AGCO) - free report >>

Monsanto Company (MON) - free report >>


You May Like