Justice Demands Conditions to New Holland-Case Merger

November 5, 1999

The Justice Department says New Holland must sell some businesses to get Justice approval for its $4.3 billion acquisition of Case Corporation. Case also must sell its interest in a hay tool business.

A lawsuit was filed Thursday by the Justice Antitrust Division in U.S. District Court in Washington, DC, to challenge New Holland's acquisition of Case. At the same time, Justice filed a proposed consent decree that if approved by the court would resolve the department's competitive concerns and the lawsuit.

Under the proposed agreement, New Holland must sell its four-wheel-drive tractor business (the Versatile line) and its large two-wheel-drive agricultural tractor business (the Genesis line). Case would sell its interest in Hay and Forage Industries, a joint venture that produces hay tools such as large and small square balers and self-propelled windrowers. The consent decree requires that the purchaser of the divested assets continue to operate them in the manufacture and distribution of four-wheel-drive tractors, large two-wheel-drive tractors and hay tools.

According to Justice, the acquisition likely would harm competition in the $1.5 billion agricultural tractor business and in the $250 million hay tools market.

In a news article datelined Racine, WI, REUTERS reports the companies agreed to exit the businesses. The companies set Nov. 12 as a tentative closing date for the deal that creates a $12 billion company that rivals Deer & Co. as the world's largest farm equipment maker.