Deere, Hitachi Enter New License, Supply Agreements

Deere & Company DE has agreed with Hitachi Ltd.'s HTHIY Hitachi Construction Machinery to end the Deere-Hitachi joint venture manufacturing and marketing agreements.
The companies will enter into new license and supply agreements, with changes to effect on Feb. 28, 2022. The financial terms of the deal were not disclosed.
John Deere will acquire the Deere-Hitachi joint-venture factories in Kernersville, NC; Indaiatuba, Brazil; and Langley, British Columbia, Canada.
John Deere will continue to manufacture Deere-branded construction and forestry excavators. These locations will discontinue the production of Hitachi-branded excavators.
John Deere's marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas will end. Hitachi will assume distribution and support for these products.
Price Action: DE shares are trading lower by 4.16% at $356.145 on the last check Thursday.