No merger for Deere, Precision Planting
Monsanto has decided to terminate a 2015 agreement for John Deere to acquire Precision Planting.
Deere & Company said in a news release Monday that it was informed by Monsanto of the decision.
“We are deeply disappointed in this outcome as we remain confident the acquisition would have benefited customers,” stated John May, president of agricultural solutions and Chief Information Officer for Deere.
The U.S. Department of Justice brought legal action in 2016 in an attempt to block the transaction. The two companies were prepared to present their case for approval of the acquisition later this year. Agreements related to the purchase will also be terminated, including a digital collaboration between Deere and The Climate Corporation and an agreement which would have allowed Ag Leader to distribute certain Precision Planting products and technologies.
A release from Monsanto states, “The Climate Corporation made the strategic decision nearly 18 months ago to focus its business exclusively on its digital agriculture platform, and that strategy has not changed. The company intends to sell the Precision Planting equipment business and has spoken with several third parties that have expressed interest in purchasing it.”
In an e-mail sent to farmer customers Monday, Climate said the announcements will have no impact on the connectivity between John Deere equipment and Climate FieldView accounts. The agreements which are being terminated are business agreements between the companies which are not expected to impact a farmer’s ability to execute planting prescriptions in Climate FieldView or obtain planting data from the field.