KOBELCO has agreed a deal to acquire the construction equipment business operated by CNH Industrial N.V. and its affiliates.
Kobelco and CNH have entered into a share purchase agreement for the transaction. CNH is expected to transfer the CNH CE business to a company it has already established. Kobelco is then expected to acquire 70% of the shares.
With roots dating back more than 180 years, CNH has developed into a global manufacturer of agricultural and construction equipment. The CNH CE business operates the brands CASE Construction Equipment and New Holland Construction, as well as Eurocomach.
Kobelco revealed that global demand for construction equipment is expected to grow over the medium to long term, driven by the renewal of ageing infrastructure, urbanisation, and growing investment in energy-related projects. At the same time, the industry faces a growing need to address labour shortages, improve safety and productivity, and reduce the environmental impact of its operations. As a result, the manufacturer said 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 challenges.
The transaction is tipped to enable Kobelco to reach more customers by drawing on the parties’ product portfolios and sales and service networks. By combining its hydraulic excavators with the CNH CE business’s complementary product portfolio, Kobelco added that it aims to offer customers a wider range of equipment suited to different applications.
The deal is subject to regulatory clearances and other customary closing conditions.
