CNH Industrial has announced a definitive agreement with Kobelco Construction Machinery to establish a joint venture that will operate CNH’s construction equipment business (CE JV), with Kobelco as the majority owner (70%).
The transaction will help CNH transform into a leading, pure-play agricultural equipment, technology and services company with a strengthened financial profile, and provide it with enhanced capacity to invest in products, precision technology and its global dealer network.
“We are confident that this is the right next step for CNH, our dealers, customers and colleagues,” said Gerrit Marx, CEO of CNH. “As the agriculture industry moves toward recovery, this transaction strengthens CNH’s ability to invest in the products and technologies that matter most to farmers.
“At the same time, by creating a stronger construction equipment player, both CNH and CE JV dealers, along with their customers, will benefit from a suite of high-quality, cost-competitive construction machines that incorporate leading technology.”
Mr Marx added, “We undertook a comprehensive process to evaluate how best to position our construction equipment business, and it was clear that Kobelco is the right long-term steward, and that our joint venture approach will ensure a smooth transition for the business and our team members who support it. The CE JV will be a leader with the scale, focus and agility to invest, accelerate innovation, and better serve global construction customers.”
At closing, CNH will continue to provide full-line agricultural applications through the Case IH, New Holland, Steyr and CNH Tech brands, including the Raven precision technology platform. CNH agriculture dealers will retain access to a suite of competitive construction equipment machines supplied by the CE JV. CNH Capital will remain part of CNH.
“This is a tremendous opportunity for our team, our dealers and our customers,” said Humayun Chishti, president of CNH’s construction segment. “We are adapting to changing dynamics in the construction sector and a greater pace of innovation. Kobelco is the ideal partner – a global excavator and crane specialist with leading technology, including K-Dive remote operation technology.
“Together as the CE JV, we will deliver a complementary portfolio built for long-term growth, and benefit from a stronger platform to do what we do best – build exceptional machines and deliver outstanding support to the people who rely on them every day.” Mr Chishti is expected to continue leading the business as CEO following closing.
The CE JV will offer a comprehensive portfolio spanning a broad range of earthmoving, lifting and compaction applications across the heavy and compact segments – including excavators, loaders, graders and dozers, compact track loaders, skid steer loaders, and tractor loader backhoes – currently sold under the Case Construction, Eurocomach and New Holland Construction brands. The CE JV’s products will also benefit from the same worldwide service and support available to customers today.
Meanwhile, CNH Capital will continue to serve the CE JV’s customers and dealers with a full range of retail financing, leases, rental programmes and insurance products. The transaction is expected to close by the end of 2027, subject to regulatory approvals and other customary closing conditions.
