CNH Industrial has entered into a definitive agreement with Kobelco Construction Machinery Co., Ltd. — a wholly owned subsidiary of Kobe Steel, Ltd. — to establish a joint venture that will operate CNH's Construction Equipment business. Kobelco will hold a majority 70% ownership position in the new entity, with CNH retaining a 30% equity stake.
The transaction values CNH's Construction Equipment business at an enterprise value of $1 billion. CNH expects to receive $700 million in cash consideration for 70% of the business, subject to adjustments for net debt, working capital, and other customary items. CNH has stated its intention to apply the net cash proceeds toward debt reduction and balance sheet strengthening. Both parties will be subject to a three-year lock-up period following closing. The transaction is expected to be accretive to CNH's margins.
The deal represents a further step in CNH's multi-year effort to exit non-agriculture segments and redirect investment toward its core equipment, technology, and services business. This transaction marks the next step in CNH's multi-year strategic transformation journey to sharpen its technology-led focus on agriculture, which began with the acquisition of Raven Industries in 2021 and the separation of the on-highway commercial vehicles business through the spin-off of Iveco Group in 2022.
At closing, CNH will continue to provide full-line agriculture applications through the Case IH, New Holland, STEYR, and CNH Tech brands, including the Raven precision technology platform. CNH agriculture dealers will have continued access to a suite of competitive construction equipment machines supplied by the joint venture. CNH Capital will remain part of CNH. CNH Capital will also continue to support the joint venture's customers and dealers with retail financing, leases, rental programs, and insurance products.
On the construction side, the joint venture will bring together CNH's Construction Equipment business — encompassing its brands, product portfolio, and global sales and service network — with Kobelco's capabilities in hydraulic excavators, cranes, and construction digital transformation solutions, including its K-DIVE® remote operation technology. The two companies have noted that their geographic footprints are largely complementary, which they say will form the basis for a broader global platform.
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. Existing service and support channels are expected to remain in place for customers following the transition.
Humayun Chishti, who currently serves as President of CNH’s Construction segment, is expected to continue in a leadership role as CEO of the joint venture following the close of the transaction.