POST Online Media Lite Edition



 

Deere abandons acquisition of Precision Planting from Monsanto

Staff Writer |
The Department of Justice announced that Deere & Company and the Monsanto Company terminated Deere’s attempt to purchase Precision Planting from Monsanto.

Article continues below






The 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.”

The proposed acquisition would have combined the only two significant U.S. providers of high-speed precision planting systems.

Planting at higher speeds can be highly valuable to farmers, many of whom have a limited window each year to plant their crops to achieve the highest crop yields.

As a result, high-speed precision planting technology is expected to become the industry standard in the coming years.


What to read next

Monsanto terminates agreement for sale of Precision Planting equipment business
Deere & Company to buy Monosem to expand precision agriculture
Monsanto buys Climate Corp. for $930 million