CNH to Sell 70% of Construction Unit to Kobelco

The Tip Desk · November 9, 2026 · 3 min read

The equipment maker will take $700 million in cash and keep a 30% stake as it advances a shift to a pure-play agriculture company.

CNH Industrial N.V. (CNH) agreed to sell a 70% interest in its Construction Equipment business to Kobelco Construction Machinery Co., Ltd., a wholly owned subsidiary of Kobe Steel, Ltd., in a joint-venture deal that values the unit at an enterprise value of $1 billion.

The mixed-consideration transaction is expected to close by the end of 2027, subject to regulatory approvals and other customary closing conditions. Kobelco will be the majority owner of the new joint venture, which will operate as a global manufacturer of construction equipment.

CNH said it expects to receive $700 million in cash for the 70% stake, subject to adjustments for net debt, working capital, and other customary items, and to use the net proceeds to reduce debt and strengthen its balance sheet. It will retain a 30% equity position in the joint venture. Each party is subject to a three-year lock-up. The company said the transaction is expected to be accretive to CNH’s margins.

The transaction marks the next step in CNH’s multi-year effort to sharpen its focus on agriculture. The company said the deal transforms it into a leading, pure-play agriculture equipment, technology, and services company, following the 2021 acquisition of Raven Industries and the 2022 spin-off of Iveco Group. At closing, CNH will continue to provide full-line agriculture applications through Case IH, New Holland, STEYR, and CNH Tech, including the Raven precision technology platform, and CNH Capital will remain part of CNH. Agriculture dealers will keep access to construction machines supplied by the joint venture.

“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.”

Chief Executive Officer Gerrit Marx said the company undertook a comprehensive process to evaluate how best to position the Construction Equipment business and that Kobelco is the right long-term steward. He said the joint-venture approach will ensure a smooth transition for the business and its team members.

The joint venture is intended to combine CNH’s brands, product portfolio, and global sales and service network with Kobelco’s hydraulic excavator and crane strengths and construction digital-transformation solutions, including K-DIVE remote operation technology. The company said the complementary geographic footprints will establish a stronger global platform. Products will span earthmoving, lifting, and compaction applications under the CASE Construction, Eurocomach, and New Holland Construction brands, with existing worldwide service channels. CNH Capital will continue to support joint-venture customers with retail financing, leases, rental programs, and insurance.

Humayun Chishti, President of CNH’s Construction segment, said Kobelco is the ideal partner and that the joint venture will deliver a complementary portfolio built for long-term growth. Chishti is expected to continue leading the business as CEO following closing. CNH will remain a strategic partner to the joint venture to provide continuity. The joint venture will be established through two companies that will jointly operate as the CE JV.