BUSINESS MEMO: DEER ACQUISITION

MOLINE, Ill. -- Deere & Co. has agreed to purchase the Timberjack Group for $600 million, an acquisition that would create one of the world's largest producers of forestry equipment.

The deal is subject to regulatory approval by the federal government and the European Commission. It is expected to close early next year.

Deere is buying Timberjack from the Metso Corporation of Finland. Timberjack reported sales of $580 million last year.

In a statement, the companies said Timberjack's management will remain in place. Deere officials said the combined company will be able to save money in product design, supply management and manufacturing expenses.

Timberjack is a world leader in the manufacture of forestry machines, with products in more than 80 countries. Deere is a leader in agricultural machinery in addition to producing timber harvesting equipment.