Kobelco agrees deal for 70% stake in CNH’s construction equipment business

Kobelco Construction Machinery Co., Ltd. has signed an agreement to acquire a 70% stake in a company housing CNH Industrial N.V.’s construction equipment division. The proposed transaction would bring the business behind CASE Construction Equipment, New Holland Construction and Eurocomach into the Kobelco Construction Machinery group.

Under the agreement, CNH would transfer the division to an already established company, NewCo, before Kobelco acquires its majority stake. CNH would remain a minority shareholder. Completion remains subject to regulatory approvals under applicable competition laws and other customary closing conditions.

The industrial logic: a broader equipment range and a wider global footprint. Kobelco brings hydraulic excavators, cranes and digital construction technologies. CNH’s construction business adds a portfolio spanning small and medium-sized machines through to large equipment for infrastructure and public works. Eurocomach contributes compact construction equipment in Europe.

CNH’s sales and after-sales networks cover North America, Europe, Latin America and other regions. Kobelco sees the established North American and Latin American operations as a route to more customers and a more geographically balanced business.

There is a technology strand, too. Through the partnership, Kobelco intends to combine CNH’s global navigation satellite system (GNSS) technologies and other capabilities with its own digital construction solutions, including K-DIVE®. The stated aim is to broaden the tools available to address jobsite challenges, against a backdrop of labour shortages and demands for better safety, productivity and environmental performance.

Parts and after-sales support form the third priority. A larger installed fleet and extended service networks would underpin efforts to improve parts availability and support more customers throughout equipment operation, while strengthening the profitability of the aftermarket business.