Under the proposed transaction, CNH will transfer its construction equipment business to a newly established company, referred to as NewCo. Kobelco Construction Machinery will then acquire 70% of the shares in NewCo, while CNH will retain the remaining 30% stake.
Following completion, NewCo will become part of the Kobelco Construction Machinery Group, with CNH continuing as a minority shareholder. The companies intend to combine their respective strengths through the partnership.
Completion of the transaction is subject to obtaining the necessary regulatory clearances under applicable competition laws and fulfilling other customary closing conditions.
1. Background and Purpose
Global demand for construction equipment is expected to grow over the medium to long term, driven by the renewal of aging infrastructure, continued urbanization, and growing investment in energy-related projects. At the same time, the construction industry faces a growing need to address labor shortages, improve safety and productivity, and reduce the environmental impact of its operations. As a result, customers now expect more than product performance and quality alone. They also seek aftermarket services that keep equipment running reliably and digital solutions that address jobsite challenges.Guided by its commitment to addressing customer needs at the jobsite, Kobelco Construction Machinery has listened closely to customers and worked to resolve the challenges they face. This approach has driven continuous improvements in its products, including hydraulic excavators and cranes, and in its technologies and services.
Building on this foundation and responding to the changing business environment, Kobelco Construction Machinery aims to strengthen the competitiveness of its products and its ability to supply equipment. It also aims to maintain close customer relationships after the sale, helping customers keep equipment operating reliably and address jobsite challenges.
The Transaction will enable Kobelco Construction Machinery to reach more customers worldwide by drawing on the Parties' product portfolios and sales and service networks. Insights gained from serving this broader customer base will help Kobelco Construction Machinery enhance its parts offerings, aftermarket services, and solutions. These improvements will deliver greater value to customers and support sustainable business growth.
2. The Parties’ Business Foundations and Complementary Strengths
With roots dating back more than 180 years, CNH has developed into a global manufacturer of agricultural and construction equipment by bringing together several long-established companies. The CNH CE Business operates the global brands CASE Construction Equipment and New Holland Construction, as well as Eurocomach, which offers compact construction equipment in Europe. It has an extensive sales and service network across North America, Europe, Latin America, and other regions worldwide. Its broad product portfolio ranges from small- and medium-sized construction equipment to large equipment for infrastructure and public works projects.Kobelco Construction Machinery has established a global business presence, developed competitive hydraulic excavators and cranes supported by technological expertise, and advanced digital transformation (DX) solutions for construction, including K-DIVE®. The CNH CE Business's broad product portfolio and sales and service network are highly complementary to Kobelco Construction Machinery's products, technologies, and jobsite expertise.
