CNH Industrial N.V. announced on November 9, 2026, a definitive agreement to sell a 70% interest in its Construction Equipment business to Kobelco Construction Machinery Co., Ltd., a subsidiary of Kobe Steel, Ltd. The transaction involves the creation of a joint venture (CE JV) that will hold the assets of CNH’s construction equipment operations. Under the terms of the agreement, Kobelco will acquire a 70% stake in a newly formed UK entity, while Kobelco Construction Machinery Investment U.S.A. LLC will acquire a 70% stake in a newly formed Delaware entity. CNH will retain a 30% ownership interest in both entities.
The aggregate cash consideration payable by the purchasers is $700 million, which represents 70% of an agreed enterprise value of $1 billion for the business. This amount is subject to customary adjustments for cash, indebtedness, and net working capital prior to closing. CNH expects to use the net cash proceeds to reduce debt and strengthen its balance sheet. The transaction is expected to close by the end of 2027, subject to the satisfaction of regulatory approvals and other closing conditions.
Prior to the closing of the transaction, CNH will complete an internal reorganization to transfer the assets and liabilities of the Construction Equipment business primarily related to the United States to Case Construction U.S. LLC and the remaining assets to Case Construction UK Limited. Following the closing, CNH’s Indian construction equipment subsidiary is expected to be sold to the UK entity. The joint venture will operate under the CASE Construction, Eurocomach, and New Holland Construction brands and will include a comprehensive portfolio of earthmoving, lifting, and compaction equipment. CNH will continue to provide full-line agriculture applications through its Case IH, New Holland, STEYR, and CNH Tech brands, and CNH Capital will remain part of the company.
