Case And New Holland
Merger Under Review

WASHINGTON —(AP)— The Justice Department announced Thursday that it is requiring both companies to divest some of their holdings to win approval of New Holland's $4.3 billion acquisition of Case Corporation.

Without the divestitures, the department said, the merger could lead to higher prices for farm machinery.

Under the proposed agreement, New Holland must sell its four-wheel-drive tractor division and large two-wheel drive agricultural tractor business, known as the Versatile and Genesis lines.

In addition, Case would sell its Hay and Forage Industries, which produces hay bailers and other equipment.

Case and New Holland compete directly in the manufacture and sale of large four-wheel-drive and two-wheel drive agricultural tractors in North America. These machines are used for tilling, planting, cultivating and harvesting crops.

New Holland, located in New Holland, Pa., produces a variety of construction and agricultural machinery. It is a subsidiary of New Holland NV, a Dutch corporation. Case is based in Racine, Wis., and also produces both construction and agricultural machinery.