Washington antitrust regulators filed a suit on Wednesday to block Deere & Co., (NYSE:DE) the US farm equipment maker, from buying Monsanto’s (NYSE:MON) precision planting unit.
If the tie-up were completed, “Deere would control nearly every method through which American farmers can acquire effective high-speed precision planting systems”, the US Department of Justice said in a filing in federal court in Chicago.
The two firms agreed to the deal in November. While the terms were not disclosed at the time, the Justice Department said in its court filing that Deere would pay $190mln for the unit that is currently owned by Monsanto subsidiary Climate Corporation.
Monsanto shares closed down 0.9% at $106.50. Deere shares ended Wednesday down 1.4% at $84.55.