DE Sells Renewable Energy Unit To EXC

Deere & Co DE has agreed to sell its renewable energy business for about $900 million to Exelon Corp EXC. The purchase of this unit marks EXC’s entry into the wind-power segment and allows DE to focus on its core business. The acquisition is valued at $860 million, plus a provision for Deere to receive as much as an additional $40 million on commencement of the planned projects. The transaction is scheduled to be completed in the fourth quarter, resulting in an after-tax charge of $25 million. The company’s earnings estimate of $375 million for the quarter does not include the charge. Exelon’s second-quarter profit slumped 32% on account of a rise in charges and expenses. The company has raised its earnings estimate for 2010. The company has been struggling with an extended period of slowing demand. On the other hand, Deere reported a 47% hike in quarterly profit on the back of a recovery in the sales of construction equipment and healthy farm sales due to higher commodities prices. Read more from Benzinga's Company news.