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. ■
The General Police Administration announced that the National Bureau of Investigation together with criminal police officers from all police departments in Slovenia are today conducting 58 investigations of residential, commercial and other premises in the area of the police departments of Ljubljana, Kranj, Koper and Nova Gorica, due to the suspicion of 21 criminal acts.