CNH Industrial has announced it will form a joint venture by selling a 70 per cent interest in its construction equipment business to Kobelco Construction Machinery.
Kobelco will be the majority owner of the construction equipment joint venture (CE JV). The transaction continues CNH’s transformation into an agricultural equipment, technology and services company with a strengthened financial profile.
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 transaction values CNH’s construction equipment business at an enterprise value of $1 billion. CNH expects to receive $700 million in cash, subject to adjustments, and retain a 30 per cent ownership stake in the joint venture.
“This transaction significantly advances CNH’s portfolio simplification and sharpens our focus on agriculture in line with our Path to 2030,” said Suzanne Heywood, Chair of the CNH Board of Directors. “As the largest pure-play agriculture machinery OEM, CNH will be better positioned than ever to invest with conviction and create value for farmers, dealers, and shareholders at every point in the cycle.”
According to Kobelco, CNH’s construction equipment business’s established presence in North America and Latin America will help the OEM reach more customers and expand sales opportunities in key markets and those with growth potential. Kobelco aims to build a more geographically balanced business and enhance its ability to serve customers worldwide.
“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,” said Gerrit Marx, Chief Executive Officer of CNH. “The CE JV will be a leader with the scale, focus, and agility to invest, accelerate innovation, and better serve global construction customers.”
The transaction brings together CNH’s construction equipment business, including its strong brands, broad product portfolio, global sales and service network and customer base, with Kobelco’s technological capabilities and product strengths in hydraulic excavators, cranes and construction DX (digital transformation) solutions.
Humayun Chishti, President of CNH’s Construction segment, is expected to continue leading the business as CEO following closing.
“This is a tremendous opportunity for our team, our dealers and our customers. We are adapting to changing dynamics in the construction sector and a greater pace of innovation,” Chishti said. “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.”
The CE JV’s products will continue to receive the same service and support available to customers worldwide through existing channels. CNH Capital will continue to support the CE JV’s customers and dealers with a full range of retail financing, leases, rental programs and insurance products.
The transaction is expected to close by the end of 2027, subject to regulatory approvals and other customary closing conditions.
At closing, CNH will continue to provide a full line of agricultural equipment and technology through the Case IH, New Holland, STEYR and CNH Tech brands, including the Raven precision technology platform.
