Kobelco to Acquire 70% Stake in CNH Construction Business
CNH Industrial has recently signed a definitive agreement with Kobelco Construction Machinery, a wholly owned subsidiary of Kobe Steel, to establish a joint venture for its construction equipment business. Under the agreement, Kobelco will acquire a 70 per cent stake, while CNH will retain 30 per cent ownership.
The transaction values CNH's construction equipment business at $1 billion, with the company expected to receive approximately $700 million in cash, subject to customary adjustments. CNH plans to utilise the proceeds to reduce debt and strengthen its financial position.
The joint venture will combine CNH's established construction equipment brands, including CASE Construction, New Holland Construction and Eurocomach, with Kobelco's expertise in hydraulic excavators, cranes and digital construction technologies. The partnership aims to create a stronger global construction equipment manufacturer with greater capabilities in product development, innovation and customer support.
The combined business will offer machinery across earthmoving, lifting and compaction applications, including excavators, loaders, graders, dozers, compact track loaders, skid steer loaders and tractor loader backhoes. Kobelco's K-DIVE remote operation technology will further support the development of advanced construction equipment solutions.
The partnership will also leverage the companies' complementary geographical presence, extensive dealer networks and technological capabilities to strengthen their competitiveness in international markets.
Suzanne Heywood, Chair of CNH's Board of Directors, said, "This transaction significantly advances CNH’s portfolio simplification and sharpens our focus on agriculture in line with our Path to 2030."
Gerrit Marx, Chief Executive Officer, CNH, said the agreement would strengthen the company's ability to invest in agricultural equipment and technologies while creating a more competitive construction equipment business.
Humayun Chishti, President of CNH's Construction segment, said, "This is a tremendous opportunity for our team, our dealers, and our customers." He is expected to continue leading the joint venture as Chief Executive Officer following completion of the transaction.
CNH will continue operating its agricultural equipment businesses through Case IH, New Holland, STEYR and CNH Tech, including the Raven precision technology platform. Meanwhile, CNH Capital will continue providing financing, leasing, rental and insurance solutions to customers and dealers of the construction equipment joint venture.
The agreement forms part of CNH's broader strategic transformation towards becoming a focused agricultural equipment and technology company. The proposed joint venture will enable Kobelco to expand its product portfolio and global market presence while providing CNH's construction equipment business with additional opportunities for technological advancement.
The transaction is expected to close by the end of 2027, subject to regulatory approvals and customary closing conditions. Both companies will be subject to a three-year lock-up period on their respective ownership stakes.
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