Sale of CNH Industrial's Construction Equipment division to Kobelco

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CNH Industrial has reached a definitive agreement with Japan's Kobelco Construction Machinery for the sale of 70% of its Construction Equipment division, which makes earth-moving machinery. The deal creates a joint venture under Japanese control, for a business valued at around a billion dollars [1][2]. The move comes just a few months after the sale of Iveco to Tata Motors and is read by Turin's unions as a further sign of industrial disengagement by the Exor holding company [1].

Terms of the agreement

CNH will receive 700 million dollars from the sale, retaining a 30% stake in the new company. Closing is expected by the end of 2027, subject to regulatory approval [1][2]. The agreement includes a three-year lock-up period, during which neither party may sell its stake; the new company is expected to be led by Humayun Chishti, currently president of CNH's Construction division [2].

The new joint venture, controlled by Kobelco, will offer a range of compact and heavy machines for earth-moving, lifting and compaction. CNH Capital will continue to provide financing solutions for dealers and customers [2].

CNH's strategy and union reaction

CNH's board chair, Suzanne Heywood, described the deal as a "portfolio simplification" aimed at concentrating resources on the agricultural sector, while chief executive Gerrit Marx spoke of the creation of a "stronger" player in the construction machinery sector. The proceeds will be used to reduce the group's debt [1][2].

For Fiom Torino, however, the sale represents "yet another worrying sign of industrial disengagement by the Exor holding company", according to general secretary Edi Lazzi, who recalled the earlier sale of Iveco [1]. Ugo Bolognesi, Fiom's officer for CNH, notes that Turin has already lost the production of earth-moving machinery once assembled at the San Mauro plant, now converted into a logistics hub for Iveco, and calls for guarantees for the roughly 200 Turin employees involved in the sale to Kobelco [1].

Sources

  1. TorinOggi — 9 November 2026
  2. Quotidiano Piemontese — 9 November 2026

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