CNH, the maker of Case IH and New Holland farm machinery, has agreed to sell 70% of its construction equipment business to Japan's Kobelco Construction Machinery. The joint venture values the business at $1bn; CNH keeps 30% and receives about $700m in cash, which it will use to cut debt.
The company says the deal makes it the world's largest agricultural machinery maker focused on farming alone. It follows the purchase of Raven Industries, the precision agriculture firm, in 2021 and the spin-off of Iveco Group in 2022. "The transaction positions CNH as the largest pure-play agriculture machinery OEM, with the ability to invest organically and inorganically as the agriculture industry moves toward recovery," said chief executive Gerrit Marx.
The announcement came with third-quarter 2026 results. Revenue was broadly flat at $4.35bn, while adjusted net income nearly doubled to $205m from $109m and adjusted diluted earnings were $0.16 a share. Reported net income fell to $35m from $67m because of a $156m non-cash charge on deferred tax assets in Brazil, and the quarter included $109m of tariff refunds. Operating activities brought in $686m.
CNH said it would put the freed resources into its farm range, the Raven precision platform, product development and its dealers. Marx pointed to "improving cycle indicators in North America" after a long downturn driven by lower farm incomes, high machinery stocks and weak farmer spending, while conditions in Europe, the Middle East, Africa and Brazil stay volatile.
The joint venture will combine CASE Construction, New Holland Construction and Eurocomach with Kobelco's excavators, cranes and its K-DIVE remote operation system. CNH's farm dealers will keep access to construction machines from the venture and CNH Capital will keep financing them. The deal is expected to close by the end of 2027, subject to regulators.
Photo: Herry Lawford / Wikimedia Commons (CC BY 2.0)
Source: AgNavigator
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