CNH to Sell Majority Stake in Construction Equipment Business to Kobelco

CNH Industrial has reached a definitive agreement with Kobelco Construction Machinery, a subsidiary of Kobe Steel, to form a joint venture that will operate CNH’s Construction Equipment business. Kobelco will own 70% of the venture, while CNH will retain a 30% stake. The transaction supports CNH’s strategy to focus on agricultural equipment, technology and services while strengthening its financial position.

CNH expects to receive $700 million for the 70% stake, based on an enterprise value of $1 billion. The company plans to use the proceeds to reduce debt and strengthen its balance sheet. The transaction is expected to improve CNH’s margins and close by the end of 2027, subject to regulatory approvals and customary closing conditions.

The joint venture will combine CNH’s construction equipment brands, broad product portfolio, global dealer and service network, and customer base with Kobelco’s expertise in hydraulic excavators, cranes and digital construction technologies, including its K-DIVE remote operation system. The combined business aims to accelerate innovation, improve competitiveness and expand its global reach.

The venture will encompass equipment currently sold under the CASE Construction, Eurocomach and New Holland Construction brands. Its product lineup will include excavators, loaders, graders, dozers, compact track loaders, skid steer loaders and tractor loader backhoes. Existing worldwide service and support channels are expected to continue, while CNH Capital will maintain financing, leasing, rental and insurance offerings for customers and dealers.

Following the transaction, CNH will continue concentrating on its agricultural brands, including Case IH, New Holland and STEYR, as well as CNH Tech and the Raven precision technology platform. Agricultural dealers will retain access to construction equipment supplied by the joint venture. Humayun Chishti, currently president of CNH’s Construction segment, is expected to lead the joint venture as CEO after closing.

The agreement represents another step in CNH’s multiyear transformation, following its 2021 acquisition of Raven Industries and the 2022 spin-off of Iveco Group. CNH says the move will allow it to direct more resources toward agricultural products and technologies, while Kobelco gains a stronger platform for growth in the global construction equipment market.

Source: Farm-Equipment.com