U.S. DoJ Sues To Block Deere's Acquisition Of Precision Planting

(RTTNews) - The U.S. Department of Justice filed a civil antitrust lawsuit today seeking to block Deere & Company's (DE) proposed acquisition of Precision Planting LLC from Monsanto Company (MON) in order to preserve competition in the market for high-speed precision planting systems in the United States.

The Antitrust Division's lawsuit alleges that the transaction would combine the only two significant U.S. providers of high-speed precision planting systems - technology that is designed to allow farmers to plant crops accurately at higher speeds. The acquisition would deny farmers throughout the country the benefits of competition that has spurred innovation, improved quality and lowered prices. The department filed its lawsuit in the U.S. District Court for the Northern District of Illinois.

The complaint alleges that Deere's proposed acquisition of the company it has described as its "number one competitor" would allow it to control nearly every method through which American farmers can acquire effective high-speed precision planting systems and provide it with the ability to set prices, output, quality and product features without the constraints of market competition.

Separately Deere & Company and The Climate Corporation said they plan to contest legal action announced today by the U.S. Department of Justice that seeks to block Deere's acquisition of Precision Planting.

In November, Deere and The Climate Corporation, a subsidiary of Monsanto Company, announced they had signed a definitive agreement for Deere to acquire the Precision Planting LLC equipment business, and the companies cooperated fully with DOJ's antitrust review.

DOJ's allegations about the competitive impacts of the transaction are misguided and the companies intend to defend the transaction vigorously against those allegations. Deere has long been focused on helping American farmers become more efficient and productive so that they can remain globally competitive, Deere said.

Deere noted that the proposed acquisition benefits farmers by accelerating the development and delivery of new precision equipment solutions that help farmers increase yield and productivity.