CNH to Form Construction Equipment Joint Venture With Kobelco

CNH Industrial has entered into a definitive agreement with Kobelco Construction Machinery to establish a joint venture that will operate CNH's Construction Equipment business. Kobelco, a wholly owned subsidiary of Kobe Steel, will hold the majority ownership position, while CNH will retain a 30% stake.

Announced November 9, 2026, the transaction values CNH's Construction Equipment business at an enterprise value of $1 billion. CNH expects to receive $700 million in cash for 70% of the business, subject to adjustments for net debt, working capital, and other customary items. The company expects to use the net proceeds to reduce debt and strengthen its balance sheet.

The transaction is expected to close by the end of 2027, subject to regulatory approvals and other customary closing conditions. Each company will be subject to a three-year lock-up period, and CNH will remain a strategic partner to the joint venture.

The joint venture will combine CNH's Construction Equipment business, including its brands, product portfolio, global sales and service network, and customer base, with Kobelco's technology and product capabilities in hydraulic excavators, cranes, and construction digital transformation solutions. Kobelco's offerings include K-DIVE remote operation technology.

The joint venture will offer equipment for earthmoving, lifting, and compaction applications across heavy and compact segments. Its product portfolio will include excavators, loaders, graders and dozers, compact track loaders, skid steer loaders, and tractor loader backhoes. Equipment currently is sold under the CASE Construction, Eurocomach, and New Holland Construction brands.

Products will continue to receive service and support through the same channels currently available to customers worldwide. CNH Capital will also continue providing retail financing, leases, rental programs, and insurance products to joint venture customers and dealers.

Humayun Chishti, president of CNH's Construction segment, is expected to continue leading the business as CEO following the transaction's closing.

“This is a tremendous opportunity for our team, our dealers, and our customers. We are adapting to changing dynamics in the construction sector and a greater pace of innovation. Kobelco is the ideal partner — a global excavator and crane specialist with leading technology, including K-DIVE remote operation technology. Together as the CE JV, we will deliver a complementary portfolio built for long-term growth, and benefit from a stronger platform to do what we do best — build exceptional machines and deliver outstanding support to the people who rely on them every day.”

The agreement is part of CNH's broader strategy to focus on agricultural equipment, technology, and services. Following the transaction, CNH will continue offering agricultural products through the Case IH, New Holland, STEYR, and CNH Tech brands, including its Raven precision technology platform.

CNH agricultural equipment dealers will retain access to construction equipment supplied by the joint venture. CNH Capital will remain part of CNH, and the company expects the transaction to improve its margins.

“This transaction significantly advances CNH’s portfolio simplification and sharpens our focus on agriculture in line with our Path to 2030,” said Suzanne Heywood, chair of the CNH Board of Directors. “As the largest pure-play agriculture machinery OEM, CNH will be better positioned than ever to invest with conviction and create value for farmers, dealers, and shareholders at every point in the cycle.”

CNH CEO Gerrit Marx said the agreement is intended to strengthen the company's ability to invest in agricultural products and technology while creating a construction equipment business with greater capacity to invest and innovate.

“We are confident that this is the right next step for CNH, our dealers, customers, and colleagues,” said Gerrit Marx, chief executive officer of CNH. “As the agriculture industry moves toward recovery, this transaction strengthens CNH’s ability to invest in the products and technologies that matter most to farmers. At the same time, by creating a stronger construction equipment player, both CNH and CE JV dealers, along with their customers, will benefit from a suite of high-quality, cost-competitive construction machines that incorporate leading technology.”

Marx said the company evaluated options for its Construction Equipment business before selecting Kobelco as its partner.

“We undertook a comprehensive process to evaluate how best to position our Construction Equipment business, and it was clear that Kobelco is the right long-term steward, and that our joint venture approach will ensure a smooth transition for the business and our team members who support it. The CE JV will be a leader with the scale, focus, and agility to invest, accelerate innovation, and better serve global construction customers.”

The transaction follows other steps in CNH's strategic transformation, including its 2021 acquisition of Raven Industries and the 2022 spin-off of Iveco Group, which separated the company's on-highway commercial vehicle business.