CNH Industrial announced on November 9 a definitive agreement with Kobelco Construction Machinery, a wholly owned subsidiary of Kobe Steel, to place its construction equipment business into a joint venture that Kobelco will control. The transaction values the business at an enterprise value of 1 billion dollars. CNH expects to receive 700 million dollars in cash for the 70 percent interest, subject to adjustments for net debt and working capital, and will retain a 30 percent equity stake, with both parties subject to a three-year lock-up.
The venture will sell machines under the CASE Construction, Eurocomach and New Holland Construction brands, spanning excavators, loaders, graders, dozers and compact equipment. Humayun Chishti, president of CNH’s construction segment, is expected to lead the business as chief executive after closing. CNH Capital stays inside CNH and will continue to finance the venture’s dealers and customers.
CNH said it will use the net cash proceeds to reduce debt and that the deal is expected to be accretive to its margins. Chair Suzanne Heywood described the sale as advancing the company’s Path to 2030 plan, following the 2021 acquisition of Raven Industries and the 2022 spin-off of Iveco Group. What remains is a pure-play agriculture business built around Case IH, New Holland, STEYR and the Raven precision platform, which together with the other brands generated 18.1 billion dollars of revenue in 2025.
For Kobelco, control of the venture adds CNH’s global sales and service network and compact equipment range to its hydraulic excavator, crane and remote operation technology. BofA Securities and Goldman Sachs advised CNH, Pillsbury Winthrop Shaw Pittman provided legal advice, Mitsubishi UFJ Morgan Stanley Securities advised Kobelco and White & Case acted for Kobelco. Closing is expected by the end of 2027, subject to regulatory approvals.