CNH to Sell 70% of Construction Equipment Business to Kobelco in $1 Billion Joint Venture Deal
CNH Industrial agreed to sell a 70% stake in its Construction Equipment business to Japan's Kobelco Construction Machinery, a deal that values the unit at an enterprise value of $1 billion and leaves CNH focused on agriculture, according to an 8-K filed Monday.
CNH expects to receive $700 million in cash for the 70% interest, subject to adjustments for cash, indebtedness, net working capital and certain transaction expenses. It plans to use the net cash proceeds to reduce debt and strengthen its balance sheet.
CNH will keep a 30% equity stake in the joint venture, and each party will be subject to a three-year lock-up period. Kobe Steel, the ultimate parent of the Kobelco buyers, has guaranteed their obligations under the agreement, including payment of the purchase price.
"This transaction significantly advances CNH's portfolio simplification and sharpens our focus on agriculture," Chair Suzanne Heywood said in the company's press release. CNH said the deal makes it the largest pure-play agriculture machinery OEM and is expected to be accretive to its margins.
How the joint venture works
Before closing, CNH will move the business into two newly formed companies, one in the U.K. and one in Delaware, and Kobelco will buy 70% of each. CNH's Indian construction equipment subsidiary will be sold to the joint venture immediately after closing under separate agreements.
The venture will sell excavators, loaders, graders, dozers, compact track loaders, skid steer loaders and tractor loader backhoes under the CASE Construction, Eurocomach and New Holland Construction brands. Humayun Chishti, president of CNH's Construction segment, is expected to continue leading the business as CEO after closing.
CNH will keep its Case IH, New Holland, STEYR and CNH Tech agriculture brands, including the Raven precision technology platform. CNH Capital stays with CNH and will continue to finance the joint venture's customers and dealers, and CNH's agriculture dealers will still have access to construction machines supplied by the venture.
"It was clear that Kobelco is the right long-term steward," Chief Executive Gerrit Marx said.
Timing
The deal is expected to close by the end of 2027, subject to Hart-Scott-Rodino clearance, other merger control and foreign investment approvals, and other conditions. Either side may terminate if it hasn't closed by March 30, 2028, a date that can be extended twice by 90 days if only regulatory conditions remain, according to the 8-K.
Sources
- CNH Industrial Form 8-K on Construction Equipment joint venture agreement with Kobelco Construction Machinery, with press release (Exhibit 99.1), filed Nov. 9, 2026 (accession 0001193125-26-452698)
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