Global positioning business Trimble is to transfer its agriculture products, assets and technologies to a joint venture that will be majority owned by Agco, transforming the machinery giant’s market presence and capabilities in precision farming.

Agco is paying Trimble $2bn (£1.64bn) and contributing an autonomy and implement control software business to the new venture, in which Trimble will have a 15% stake and Agco 85%.

The two parties say their aim is to create a global leader in mixed fleet smart farming and autonomy solutions.

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Agco’s top executive, Eric Hansotia, said: “This deal significantly enhances Agco’s technology stack with disruptive technologies that cover every aspect of the crop cycle, which ultimately helps us better serve farmers no matter what brand they use.

“The exclusive access to Trimble Ag products combined with Agco’s existing precision agriculture offerings also accelerates Agco’s growth ambitions around autonomy, precision spraying, connected farming, data management and sustainability.”

Trimble Ag offers equipment manufacturer and after-market products, including vehicle and implement guidance, section control, variable rate sowing, spraying and spreading, and cloud-based enterprise management systems.

These and other products within the portfolio will transfer to the as yet un-named joint venture, as will Agco’s JCA Technologies, a Canada-based leader in the development of autonomous software for agricultural machines, implement controls and electronic system components that Agco acquired in May 2022.

Following the deal, which is expected to close in the first half of 2024, Trimble will supply key GNSS and guidance technologies to the joint venture while focusing on other markets and industries.