GlobeNewswire·Nov 9, 2026, 1:30 AM ET

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

CNH Industrial has signed a definitive agreement with Kobelco Construction Machinery to form a joint venture by selling a 70% stake in its Construction Equipment business.
The transaction values the Construction Equipment business at an enterprise value of $1 billion, with CNH receiving $700 million in cash & retaining a 30% ownership stake.
CNH will transform into a pure-play agriculture equipment, technology, & services company to sharpen its focus on farming while strengthening its financial profile.
The joint venture combines CNH's brands (including CASE Construction & New Holland Construction) with Kobelco's hydraulic excavator, crane, & digital transformation capabilities.
CNH will continue to supply construction equipment to its agriculture dealers through the CE JV, while CNH Capital remains part of the parent company to provide financing.
Humayun Chishti is expected to continue leading the joint venture as CEO following the closing of the deal.
Each party is subject to a three-year lock-up period, & the transaction is expected to close by the end of 2027 subject to regulatory approvals.
CNH plans to use the net cash proceeds to reduce debt & strengthen its balance sheet, with the deal expected to be accretive to its margins.