Trimble (NASDAQ:TRMB) stock is heading higher on Thursday as investors react to a new agreement with AGCO (NYSE:AGCO).
The big news here that has shareholders of TRMB stock excited is the company forming a joint venture with AGCO. This has Trimble expecting the joint venture to generate $3 billion in value from pre-tax cash proceeds, commercial agreements, and its 15% stake in the company.
Breaking that down, Trimble will get $2 billion in pre-tax cash proceeds as part of its agreement with AGCO. The remaining $1 billion in value comes from the 15% stake the company will have in the joint venture.
Also included in this agreement is Trimble acting as a long-term supplier for the joint venture. This will have it providing the company with its Global Navigation Satellite System and guidance technologies.
What This Means for TRMB Stock
Rob Painter, president and CEO of Trimble, said the following about the joint venture agreement:
“We believe a joint venture with AGCO, complemented by the successful mixed fleet approach that they have developed with their Precision Planting business model, can help us better serve farmers and OEMs together.”
TRMB stock is up 2.6% as of Thursday morning, with more than 200,000 shares changing hands. That’s still below its daily average trading volume of about 1.2 million shares.
Investors searching for more of the most recent stock market news on Thursday are in the right place!
InvestorPlace is home to all of the biggest stock market stories that traders need to know about today! A few examples of that include why shares of Meta Platforms (NASDAQ:META), GameStop (NYSE:GME) and Synlogic (NASDAQ:SYBX) stock are moving today. All of that info is available at the following links!
More Stock Market News for Thursday
- META Stock Alert: 9 Takeaways From Meta Connect 2023
- GME Stock Alert: Ryan Cohen Is Taking Over as GameStop CEO
- Why Is Synlogic (SYBX) Stock Down 6% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
