CNH to sell 70% stake in construction equipment business to Kobelco for $700M

CNH Industrial announced plans to sell a 70% stake in its construction equipment business to Japan-based Kobelco for $700 million, according to Manufacturing Dive.

This transaction is part of CNH's strategy to simplify its portfolio and concentrate exclusively on agriculture equipment, technology, and services.

The joint venture will combine CNH's construction equipment brands, including Case, New Holland, and Eurocomach, with Kobelco's hydraulic excavators, cranes, and digital services, expanding their geographic reach and technology offerings.

A three-year lock-up period will prevent share transfers in the venture, after which CNH will retain a 30% stake and may transfer full ownership to Kobelco.

Humayun Chishti, president of CNH's construction segment, will lead the joint venture as CEO once the deal closes, aiming to enhance competitiveness and customer support in the construction industry.

The deal awaits regulatory approval and builds on a previous partnership between CNH and Kobelco in global equipment initiatives.