AGCO to Buy Precision Planting Farm Equipment Business from Monsanto
Back in 2015, John Deere announced an agreement to purchase the Precision Planting LLC farm equipment business, but the deal fell apart due to a legal fight with antitrust authorities.
Agricultural equipment manufacturer AGCO
has become the next potential buyer for Monsanto's Precision Planting LLC
farm equipment business. AGCO announced a definitive agreement has been signed on Wednesday with The Climate Corporation, a subsidiary of Monsanto, for AGCO to acquire the Precision Planting LLC equipment business. The terms were not disclosed, however, the Climate Corporation’s Climate FieldView digital agriculture platform will retain connectivity with Precision Planting’s 20/20 SeedSense monitor.
Back in 2015, Deere announced an agreement to purchase the Precision Planting LLC farm equipment business but the U.S. Department of Justice filed a lawsuit to block the sale saying the acquisition could make it more expensive for farmers to use high-speed precise planting technology. In May of 2017, Monsanto terminated the agreement to sell the Precision Planting LLC farm equipment business to Deere, ending the legal fight with the DOJ.
The Department of Justice applauded the end of that transaction
, claiming a "victory for American farmers and consumers."
“The companies’ decision to abandon this transaction is a victory for American farmers and consumers. 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.”
- Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division
We'll see what happens this time.
“The acquisition of Precision Planting will solidify AGCO as one of the global leaders in planting technology and strengthen our position as a full line partner for professional farmers across the globe.”
- Martin Richenhagen, AGCO’s chairman, president and chief executive officer
By Curtis Sund
on July 27, 2017
More in Industry News