In August, the U.S. Department of Justice challenged the transaction, stating that the deal would bring together the largest manufacturers of high-speed planting technology. Deere replied that the Justice Department’s antitrust concerns were “misguided,” and that the company would fight the lawsuit.
Today, Deere announced that the company has reached an agreement with Ag Leader, which will allow the precision agriculture competitor to offer Precision Planting products. Ag Leader will remain a completely independent competitor to Deere and Precision Planting.
The agreement will provide Ag Leader the technologies and licenses needed to manufacture and sell SpeedTube, vSet, vDrive, and DeltaForce, once Deere’s acquisition of Precision Planting is complete. Ag Leader can sell these components to retrofit John Deere and other brands of planters.
Ag Leader will also provide a competitive source of supply for OEM manufacturers that equip their planters with Precision Planting components, which includes Case IH and AGCO.
In a press release today, Deere also noted how “the proposed acquisition would accelerate the development of new precision equipment solutions to help farmers improve productivity and increase yields to help feed a growing global population.” In addition, the Ag Leader agreement “enables Ag Leader to further develop these products and continue delivering innovative solutions for precision agriculture.”