Tractor giant Deere & Co (NYSE:DE) is to buy Germany's Wirtgen, a construction equipment manufacturer, for almost $5 billion.
Deere says it will help its construction business expand internationally.
Wirtgen's machines are used to lay concrete and asphalt for highways and roads, and to flatten roads after asphalt is laid.
It has around 8,000 employees and sells products in more than 100 countries.
"The acquisition of the Wirtgen Group aligns with our long-term strategy to expand in both of John Deere's global growth businesses of agriculture and construction," said Samuel R. Allen, Deere's chairman and chief executive.
"Wirtgen's superb reputation, strong customer relationships and demonstrated financial performance are attractive as we expand the reach of John Deere construction equipment to more customers, markets, and geographies."
The deal is expected to close before the end of January next year and values Wirtgen at about $5.2 billion, including debt.
Deere shares in New York added 2.48% to $125.50.