Deere abandons acquisition of precision planting from Monsanto
May 1, 2017
Deere & Company and the Monsanto Company have terminated Deere's attempt to purchase Precision Planting LLC from Monsanto, the Justice Department announced late today (May 1).
The Justice Department filed suit on Aug. 31, 2016, to block the acquisition, alleging that the transaction was a merger-to-monopoly in high-speed precision planting systems, an innovative technology that enables farmers to accurately plant corn, soybeans and other row crops at up to twice the speed of a conventional planter.
The case was scheduled for trial in U.S. District Court in Chicago on June 5, 2017.
"The companies' decision to abandon this transaction is a victory for American farmers and consumers," said Acting Assistant Attorney General Andrew Finch of the Justice Department's Antitrust Division.
"Had this acquisition gone forward, significant head-to-head competition between Deere and Monsanto's Precision Planting — competition that has led to lower prices and more innovative products — would have been lost. Agriculture is one of the most important sectors of our economy and the Antitrust Division will remain vigilant to ensure that competition in agriculture markets is not thwarted through illegal transactions."