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CNH Announces Agreement to Form a Joint Venture by Selling a 70% Interest in its Construction Equipment Business to Kobelco Construction Machinery

CNH
  • CNH Industrial N.V. has signed a definitive agreement to sell a 70% stake in its Construction Equipment business to Kobelco Construction Machinery, a subsidiary of Kobe Steel, Ltd.
  • The transaction creates a joint venture (CE JV) valued at an enterprise value of $1 billion, with Kobelco as the majority owner and CNH retaining a 30% equity interest.
  • CNH will receive $700 million in cash consideration, subject to customary adjustments, which it plans to use to reduce debt & strengthen its balance sheet.
  • The deal is expected to be accretive to CNH's margins & transform the company into a pure-play agriculture equipment, technology, & services provider.
  • CNH's agriculture brands including Case IH, New Holland, STEYR, & CNH Tech (with the Raven platform) will remain under CNH ownership.
  • CNH agriculture dealers will continue to access construction equipment supplied by the CE JV, while CNH Capital will provide financing & insurance support.
  • The CE JV will combine CNH's global construction portfolio with Kobelco's expertise in hydraulic excavators, cranes, & digital transformation solutions like K-DIVE®.
  • Humayun Chishti is expected to continue leading the CE JV as CEO following the closing.
  • Both parties are subject to a three-year lock-up period to ensure continuity & facilitate a smooth transition.
  • The transaction is expected to close by the end of 2027, pending regulatory approvals & other customary closing conditions.