MOLINE, Ill., Aug. 31, 2016 /CNW/ -- Deere & Company
(NYSE: DE) and The Climate Corporation said they plan to contest
legal action announced today by the U.S. Department of Justice
(DOJ) 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.
The proposed acquisition benefits farmers by accelerating the
development and delivery of new precision equipment solutions that
help farmers increase yield and productivity.
Competition in precision agriculture is strong and growing in
all of these channels as companies around the world continue
developing new technologies. The acquisition will enable
broader access to these advancements by ensuring farmers the choice
to either buy new machinery or retrofit older planting equipment
with the latest new innovations. When the transaction is
finalized, Deere will preserve Precision Planting's independence in
order to ensure innovation and speed-to-market and will invest in
additional innovation efforts at Precision Planting to benefit
customers.
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SOURCE Deere & Company