Kobelco Construction Machinery has acquired the construction equipment business of CNH Industrial and its affiliates both companies announced this week. Kobelco and CNH Industrial have entered into a share purchase agreement for Kobelco to acquire 70 percent of the shares. CNH will transfer the CNH CE business to a company it has established called NewCo to facilitate the transaction. Kobelco will then acquire 70 percent of the shares of NewCo. Completion of the transaction is subject to necessary regulatory clearances and other customary conditions.
The transaction continues CNH's transformation into a leading, pure-play agriculture equipment, technology, and services company with a strengthened financial profile and gives it enhanced capacity to invest in products, precision technology, and its global dealer network.
“This transaction significantly advances CNH’s portfolio simplification and sharpens our focus on agriculture in line with our Path to 2030,” said Suzanne Heywood, chair of the CNH board of directors. “As the largest pure-play agriculture machinery OEM, CNH will be better positioned than ever to invest with conviction and create value for farmers, dealers, and shareholders at every point in the cycle.”
“We are confident that this is the right next step for CNH, our dealers, customers, and colleagues,” said Gerrit Marx, CEO of CNH. “As the agriculture industry moves toward recovery, this transaction strengthens CNH’s ability to invest in the products and technologies that matter most to farmers. At the same time, by creating a stronger construction equipment player, both CNH and CE JV dealers, along with their customers, will benefit from a suite of high-quality, cost-competitive construction machines that incorporate leading technology.
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