Competition concerns have seen the proposed deal for John Deere to acquire Monsanto’s Precision Planting LLC abandoned.
In August of last year, the US Department of Justice filed a civil antitrust lawsuit seeking to block John Deere’s proposed acquisition of the company.
The US Department of Justice alleged that the transaction was a merger-to-monopoly in high-speed precision planting systems.
Precision Planting LLC is a technology that allows farmers to accurately plant corn, soybeans and other row crops at up to twice the speed of a conventional planter.
’Victory’ for American farmers
Acting assistant attorney general Andrew Finch of the Justice Department’s Antitrust Division said that 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.”
High-speed precision planting
The proposed acquisition would have combined the only two significant US 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 yields.
As a result, high-speed precision planting technology is expected to become the industry standard in the coming years.
Deere and Company, is the largest manufacturer of planting equipment in the United States, including its ExactEmerge high-speed precision planting system, according to the Department of Justice.
Precision Planting LLC is a leading innovator in planting equipment, including its SpeedTube high-speed precision planting system and is a subsidiary of Monsanto Company.
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Competition concerns have seen the proposed deal for John Deere to acquire Monsanto’s Precision Planting LLC abandoned.
In August of last year, the US Department of Justice filed a civil antitrust lawsuit seeking to block John Deere’s proposed acquisition of the company.
The US Department of Justice alleged that the transaction was a merger-to-monopoly in high-speed precision planting systems.
Precision Planting LLC is a technology that allows farmers to accurately plant corn, soybeans and other row crops at up to twice the speed of a conventional planter.
’Victory’ for American farmers
Acting assistant attorney general Andrew Finch of the Justice Department’s Antitrust Division said that 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.”
High-speed precision planting
The proposed acquisition would have combined the only two significant US 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 yields.
As a result, high-speed precision planting technology is expected to become the industry standard in the coming years.
Deere and Company, is the largest manufacturer of planting equipment in the United States, including its ExactEmerge high-speed precision planting system, according to the Department of Justice.
Precision Planting LLC is a leading innovator in planting equipment, including its SpeedTube high-speed precision planting system and is a subsidiary of Monsanto Company.
How important is technology in making silage?
Is this the world’s most powerful tractor?
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