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Deere responds to DOJ on Precision Planting deal

John Deere has filed a response to the U.S. Department of Justice’s (DOJ) antitrust lawsuit regarding Deere’s proposed acquisition of Precision Planting from Monsanto.

In August, DOJ challenged the proposed transaction saying that, because the deal involved the largest manufacturers of high speed planting technology, competition would be reduced.  But Deere spokesman Ken Golden says DOJ is incorrectly interpreting the market.

“They have defined high speed precision planting as a market in and of itself,” Golden says. “We happen to believe that planting—the broader view of planting—is the market. And precision planting is a portion of that market.”

In its response, Deere also revealed an agreement with technology and software manufacturer Ag Leader that will allow Ag Leader to offer products currently sold by Precision Planting—a move that could improve the prospects of the Deere-Precision Planting deal being approved.

“You can just look at that and say to yourself, ‘well, Deere must want to make sure that the Department of Justice knows it’s serious about providing lots of choices to customers’,” Golden says, “because that really gives them another choice.”

Golden says the agreement with Ag Leader will take effect once the acquisition of Precision Planting is completed.

AUDIO: Ken Golden