CNH Announces Agreement to Sell 70% of Construction Unit to Kobelco

Gotrade News - CNH Industrial (CNH) agreed to form a joint venture with Kobelco Construction Machinery by selling it a 70% interest in its Construction Equipment business, according to CNH's official release on Monday, November 9, 2026. The transaction values the business at an enterprise value of $1 billion.

CNH Market Data

Regular-session close on November 9, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. Market cap: that close times the shares outstanding on the latest 10-Q or 10-K cover (SEC EDGAR).

What CNH Announced

Under the definitive agreement, Kobelco Construction Machinery Co., Ltd., a wholly owned subsidiary of Kobe Steel, Ltd., will be the majority owner of the joint venture that will operate CNH's Construction Equipment business. 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, and will retain a 30% equity ownership position. Each party will be subject to a three-year lock-up period, and CNH will remain a strategic partner to the joint venture, the company said.

The joint venture will offer 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. Humayun Chishti, President of CNH's Construction segment, is expected to continue leading the business as CEO after closing. The transaction is expected to close by the end of 2027, subject to regulatory approvals and other customary closing conditions.

Why It Matters for CNH

According to the company, the deal continues its transformation into a pure-play agriculture equipment, technology and services company, a journey that began with the acquisition of Raven Industries in 2021 and the spin-off of Iveco Group in 2022. CNH said it expects to use the net cash proceeds to reduce debt and strengthen its balance sheet, and that the transaction is expected to be accretive to its margins.

After closing, CNH will continue to offer agriculture equipment through its Case IH, New Holland, STEYR and CNH Tech brands, and CNH Capital will remain part of the company. Its agriculture dealers will keep access to construction machines supplied by 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.

This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.

This article was written with the help of AI and checked by the Gotrade team before publishing.

Sources

• CNH Industrial Form 8-K, Exhibit 99.1 (SEC EDGAR)