CNH to sell majority interest in construction equipment unit to Kobelco in $1 billion deal
CNH•CNH Industrial will sell a 70% interest in its construction equipment business to Kobelco Construction Machinery in a deal valued at $1 billion, including debt. CNH expects to receive $700 million in cash and retain a 30% stake; the deal is expected to close by the end of 2027.
1. Joint venture deal
CNH Industrial said it will sell a 70% interest in its construction equipment business to Kobelco Construction Machinery, creating a joint venture called CE JV, with Kobelco as majority owner. The deal is valued at $1 billion, including debt.
2. Cash and retained stake
CNH expects to receive $700 million in cash, subject to adjustments for net debt, working capital and other customary items, and will retain a 30% equity stake in CE JV. The transaction is expected to close by the end of 2027.
3. Focus on agriculture
CNH said the sale will help it sharpen its focus on agriculture equipment, technology and services. CEO Gerrit Marx said the transaction strengthens the company's ability to invest in products and technologies for farmers as the agriculture industry moves toward recovery. Humayun Chishti is expected to continue leading the new business.
