The U.S. Department of Justice has blocked John Deere‘s attempt to acquire Precision Planting. Deere & Company and The Climate Corporation have both announced plans to legally contest that action.
Plans for Deere to purchase Precision Planting were announced last November. Both parties have been fully cooperating in the DOJ’s antitrust review process. The DOJ states the competitive impact of the transaction are misguided but Deere and Climate Corp deny these allegations. Deere believes the addition of precision equipment solutions will allow them to assist farmers in becoming more productive, a core value of the company for generations.
In an era of rapid growth in precision technologies, competition for all avenues of development is high. Deere hopes to acquisitions would ensure growers could buy new machinery or retrofit older equipment while still using the newest innovations. When the acquisition is finalized Deere states they will preserve Precision Planting’s independence in order to ensure innovation and maintain benefits for Precision Planting customers.