Justice Department Challenges Deere's Planned Deal With Monsanto
31 August 2016 - 6:40PM
Dow Jones News
The Justice Department on Wednesday filed a lawsuit challenging
Deere & Co.'s planned acquisition of a line of high-tech
farming equipment from Monsanto Co., saying the deal would suppress
competition for technology that allows farmers to plant crops at
higher speeds.
At issue is a deal from last November in which Deere said it
agreed to pay an undisclosed sum to buy Monsanto's Precision
Planting equipment business.
The Justice Department said Monsanto's equipment line had been a
leading innovator in high-speed planting technology, with Deere as
its only significant competitor.
"If this deal were allowed to proceed, Deere would dominate the
market for high-speed precision planting systems and be able to
raise prices and slow innovation at the expense of American farmers
who rely on these systems," said Renata Hesse, the acting head of
the Justice Department's antitrust division.
The department filed the lawsuit in an Illinois federal court,
asking a judge to block the deal.
The companies couldn't immediately be reached to comment.
The case is the latest from Obama administration antitrust
enforcers who have been particularly active in the twilight of
their tenure.
The Justice Department is currently litigating challenges to two
major health insurance mergers: Anthem Inc.'s acquisition of Cigna
Corp.; and Aetna Inc.'s deal to combine with Humana Inc. Earlier
this year it blocked Halliburton Co.'s acquisition of
oil-field-services rival Baker Hughes.
The department also is continuing to review the proposed merger
of Dow Chemical Co. and DuPont Co.
Write to Brent Kendall at brent.kendall@wsj.com and Jacob Bunge
at jacob.bunge@wsj.com
(END) Dow Jones Newswires
August 31, 2016 12:25 ET (16:25 GMT)
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