Kobelco acquires 70% stake in CNH construction

Key Takeaways:

• CNH Industrial agreed to sell a 70% controlling stake in its construction equipment division to Kobelco in a deal valued at roughly $1.42 billion (US$1 billion).
• The joint venture preserves the CASE and New Holland brands, existing Canadian dealer networks, and retail financing through CNH Capital.
• CNH will retain a 30% equity stake and use roughly $993 million (US$700 million) in cash proceeds to refocus operations as a pure-play agricultural machinery manufacturer.

The Whole Story:

Global heavy equipment manufacturer CNH Industrial N.V. has agreed to sell a 70% controlling stake in its global construction equipment business to Japan’s Kobelco Construction Machinery Co., Ltd., in a transaction valued at an enterprise value of approximately $1.42 billion (US$1 billion).

Announced Tuesday, the joint venture combines CNH’s established North American earthmoving brands—principally CASE Construction Equipment and New Holland Construction—with Kobelco’s specialized hydraulic excavator engineering and digital teleoperation systems. CNH will receive approximately $993 million (US$700 million) in gross cash proceeds while retaining a 30% equity interest in the new joint venture entity, subject to a three-year lock-up period.

The venture will continue manufacturing and marketing machinery under the CASE and New Holland badges, supported through existing Canadian dealer networks and authorized distributors. CNH dual-line agricultural dealerships will retain access to compact and light construction equipment, while retail financing, leasing, and insurance packages will continue uninterrupted through CNH Capital.

The combined portfolio retains full availability of core Canadian fleet machines, including wheel loaders, graders, dozers, backhoes, compact track loaders, and mini excavators. It also grants Canadian operators direct access to Kobelco’s heavy excavator boom engineering and its proprietary K-DIVE remote teleoperation platform, designed to support remote northern infrastructure projects and alleviate ongoing skilled-labour constraints.

“This transaction creates a stronger, more agile construction partner for Canadian dealers and end-users,” said Gerrit Marx, Chief Executive Officer of CNH. “By combining CASE’s deep field heritage and versatile earthmoving line with Kobelco’s world-class excavator platforms and digital capabilities, contractors across North America will benefit from high-efficiency machines engineered for modern job sites.”

Humayun Chishti, current President of CNH’s Construction segment and designated Chief Executive Officer of the joint venture, stated that pairing Kobelco’s technical capabilities with CASE’s broad field footprint creates an operating platform tailored to the demanding site conditions faced by Canadian fleet operators.

CNH plans to deploy the transaction proceeds to reduce debt and focus its corporate resources as a pure-play agricultural equipment producer centered on brands including Case IH, New Holland Agriculture, STEYR, and Raven precision technologies. Existing Canadian equipment warranties, service contracts, and parts supply pacts remain in effect, with the transaction expected to close by late 2027 pending regulatory approvals.