Deere (NYSE:DE) announced it is selling it wind energy business to a subsidiary of Exelon Corp. (NYSE:EXC) for $900 million.
With the recession continuing on, energy prices remain flat, and will for some time, so organic growth isn't going to happen for these companies.
But the low-price atmosphere is also connected to markets, and that is providing companies like Exelon with good opportunities to snap up companies relatively cheap.
That's why companies with a lot of cash on hand are positioned much stronger than those that aren't, as they can do this with little or no leverage.
Even though Deere had wanted to wait until prices increased for the wind farm, economic data reveals that could be a long wait, and they didn't want to continue with the distraction.
Deere said they want to get back to their core business of building farm equipment.
The rural factor is the reason they entered the wind business in the first place, but other then putting these ugly things on land, there really wasn't much connection.
The deal should close by the end of 2010.