The Climate Corp., a subsidiary of Monsanto Co., announced it is terminating an agreement for Deere & Co. to acquire Precision Planting.
An agreement for digital collaboration between Deere and The Climate Corp. will also be terminated, as well as an agreement for Ag Leader to expand access to and distribution of certain Precision Planting products and technologies.
Ag Equipment Intelligence publisher Dave Kanicki says the deal likely fell through after the closing of the acquisition had been delayed by a lawsuit from the Department of Justice. Another factor that may have contributed to Monsanto’s decision is that Bayer is currently acquiring the company.
More than 50% of no-tillers who participated in an online No-Till Farmer survey about the termination are happy Deere isn’t acquiring Precision Planting, while 21% are indifferent and 25% are either disappointed or unsure of how they feel.
The Climate Corp. says it still intends to sell Precision Planting and has spoken with several interested third parties. Approximately 54% of survey takers say they would prefer Precision Planting become an independent company again, with nearly 56% reporting that a future acquisition of Precision Planting would impact their decision to purchase Precision Planting equipment.