PR
CNH Announces Agreement to Form a Joint Venture by Selling a 70% Interest in its Construction Equipment Business to Kobelco Construction Machinery
CNH Industrial agreed to sell a 70% stake in its Construction Equipment business to Kobelco Construction Machinery, a subsidiary of Kobe Steel, forming a joint venture. The deal values that business at an enterprise value of $1 billion, with CNH expected to receive $700 million in cash and keep a 30% ownership stake in the joint venture. For shareholders, the transaction is described as narrowing CNH to a pure-play agriculture company, with proceeds expected to reduce debt and strengthen the balance sheet. The deal is not yet complete and is described as expected to be accretive to CNH margins.
- Enterprise value of construction business
- $1 billion
- Cash consideration expected
- $700 million
- CNH stake retained in joint venture
- 30%
- Kobelco stake in joint venture
- 70%
