Deere & Co. has agreed to purchase the foreign-held shares of Shanghai GE Construction Equipment Engineering Co., a joint venture rental company in Shanghai, China, that focuses on crane rentals. Terms of the transaction were not disclosed.

The move introduces Moline, Ill.-based Deere to the growing rental industry in China, according to Deere spokesman Ken Golden. "This gives us an entry point, not only in rentals, but also in the Chinese market for sales," he said.

Added Pierre Leroy, president of Deere Worldwide Construction Equipment Division: "This investment represents one element of a broader and aggressive global growth strategy for John Deere."

Leroy said Deere would change the Shanghai facility's focus on crane rentals to renting a full line of construction machinery. Deere will also rent products in China that are made in its Dubuque and Davenport, Iowa, plants as well as products manufactured through its joint venture with Hitachi.

Deere will purchase the 60 percent owned by GE Capital Corporation and the 20 percent owned by American Construction Equipment Co. Shanghai Urban Construction Investment and Development General Corp. will hold the remaining shares.

The buyout is pending approval from the Chinese government, which is expected to take 60 to 90 days. Deere also owns a stake in Arizona-based Sunstate Equipment, No. 13 on the RER 100.