CNH Selling Construction Equipment Business To Kobelco

Nov 9, 2026 - an hour ago

CNH announces agreement to form a joint venture by selling a 70% interest in its construction equipment business to Kobelco Construction Machinery.

CNH Industrial N.V. (NYSE: CNH) today announced a definitive agreement with Kobelco Construction Machinery Co., Ltd., a wholly owned subsidiary of Kobe Steel, Ltd. (collectively, “Kobelco”), to establish a joint venture that will operate CNH’s Construction Equipment business (“CE JV”). Kobelco will be the majority owner of the CE JV. The transaction continues CNH's transformation into a leading, pure-play agriculture equipment, technology, and services company with a strengthened financial profile and gives it enhanced capacity to invest in products, precision technology, and its global dealer network.

“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.”

“We are confident that this is the right next step for CNH, our dealers, customers, and colleagues,” said Gerrit Marx, Chief Executive Officer 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 highquality, cost-competitive construction machines that incorporate leading technology.”

Marx continued, “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 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 CE JV. CNH Capital will remain part of CNH. The transaction is expected to be accretive to CNH's margins.

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. This transaction now enables CNH to deploy its resources entirely to the products and technologies that matter most to farmers.

Creating a Stronger Construction Equipment Player in the CE JV

This transaction brings together CNH’s Construction Equipment business’ strong brands, broad product portfolio, global sales and service network, and strong customer base with Kobelco’s technological capabilities and product strengths in hydraulic excavators and cranes, and construction DX (digital transformation) solutions including K-DIVE® remote operation technology. The complementary geographic footprints of CNH’s Construction Equipment business and Kobelco will establish a stronger global platform for continued growth.

Humayun Chishti, President of CNH's Construction segment, said, “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. 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.” 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 continue to be supported by the high-quality service and support available worldwide to customers today, through the same 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.

Transaction Details

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 expects to use these net cash proceeds to reduce debt and strengthen its balance sheet. CNH will retain a 30% equity ownership position in the CE JV. Each party will be subject to a three-year lock-up period. To provide continuity and facilitate a smooth business transition, CNH will continue to remain a strategic partner to the CE JV.

The joint venture will be established through the creation of two companies that will jointly operate as the CE JV.

The transaction is expected to close by the end of 2027, subject to regulatory approvals and other customary closing conditions.

Kobelco issued a separate press release in connection with this announcement. CNH will also report its 2026 third quarter earnings results in a separate announcement later today, available at https://investors.cnh.com.

Advisors

BofA Securities and Goldman Sachs & Co. LLC are acting as financial advisors to CNH. Pillsbury Winthrop Shaw Pittman LLP is acting as legal advisor to CNH.

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is acting as financial advisor to Kobelco Construction Machinery, and White & Case LLP is acting as legal advisor to Kobelco Construction Machinery.

Conference Call and Webcast

CNH hosted a conference call and live webcast today at 9:00 am ET to discuss its 2026 third quarter earnings results and the transaction. The webcast, along with related presentation materials, will be available on the Investor Relations section of CNH's website at investors.cnh.com. A recording of the conference call will be available later at investors.cnh.com.

Source: CNH Industrial