No competition will be lost as a result of John Deere’s proposed acquisition of Monsanto’s Precision Planting LLC, according to John Deere.
Last month, the US Department of Justice filed a civil antitrust lawsuit seeking to block the deal and now John Deere has responded to the complaint, rebutting the lawsuit.
Deere and Precision Planting are the only two effective competitors in high-speed precision planting, conservatively accounting for at least 86% of the market, according to the US Department of Justice complaint.
It believes that the acquisition would deny farmers throughout the country the benefits of competition that has spurred innovation, improved quality and lowered prices.
However, a statement from John Deere said that the agricultural industry will benefit from the acquisition through faster and better innovation focused on helping agricultural commodity growers increase crop yields and operate more efficiently.
Instead of competition being lost as a result of the transaction, John Deere has said that competition will actually intensify.
According to John Deere, the justice department long ago cleared this transaction to proceed, only to change its mind and bring this lawsuit when a competitor to John Deere protested.
“However, it is a fundamental maxim that antitrust laws are meant to protect competition, not competitors.
“Growers deserve the benefits of this transaction and the increased innovation, competition, and consumer choice that a combination of Deere and Precision Planting will create.
“Ultimately, the transaction provides all growers with greater freedom of choice and more independent channels and options to buy Precision Planting components. The transaction will ensure even more robust competition to provide equipment, aftermarket components, and other means to increase growers’ yields and lower costs,” the statement read.