Contractors running CASE backhoes or New Holland excavators will soon see a Japanese engineering powerhouse running the factory floor. CNH Industrial has signed a definitive deal to offload a 70% controlling stake in its global construction equipment arm to Kobelco Construction Machinery, a subsidiary of Kobe Steel. The transaction values the business at an enterprise value of $1 billion. CNH will pocket $700 million in cash consideration for the carved-out majority, before standard balance sheet adjustments for net debt and working capital.
The strategy is straightforward. CNH wants to cut debt, fortify its books, and shed non-core industrial segments. The business had already spun off its Iveco on-highway commercial vehicle unit in 2022 and absorbed precision-agriculture specialist Raven Industries in 2021. This sale marks the practical culmination of that shift. Agriculture is now the sole priority. Yet CNH is not walking away entirely empty-handed, choosing to retain a 30% equity stake in the resulting joint venture alongside a mandatory three-year post-closing lock-up.
Fleet owners will notice little immediate disruption on work sites. The joint venture will continue manufacturing and distributing earthmoving, lifting, and compaction machines across both heavy and compact segments—spanning excavators, wheel loaders, motor graders, dozers, compact track loaders, and skid steers under the CASE Construction, Eurocomach, and New Holland Construction badges. Existing customer support, service bays, and component distribution channels will stay operational. Crucially, CNH Capital remains under CNH control, guaranteeing continued access to commercial equipment loans, equipment leasing, rental schemes, and retail insurance programs.
The mechanical gains could be considerable. Kobelco brings deep engineering roots in hydraulic excavators, industrial crawler cranes, and jobsite automation—including its proprietary K-DIVE remote teleoperation system. Paired with CNH's footprint across the Americas and Europe, the tie-up fills glaring geographic and technical gaps for both firms.
| Joint Venture Metric | Transaction Detail |
|---|---|
| Enterprise Valuation | $1.0 Billion |
| Kobelco Equity Stake | 70% (Majority Owner) |
| CNH Retained Stake | 30% (Minority Partner) |
| Cash Consideration to CNH | $700 Million |
| Post-Close Lock-Up Window | 3 Years |
Humayun Chishti, the current president of CNH's construction division, will take the helm as chief executive officer of the new joint venture once regulatory clearances clear. Meanwhile, CNH will redirect its capital expenditures back into agricultural flagships Case IH, New Holland, STEYR, and Raven precision systems. Agricultural dealerships will preserve their rights to retail construction hardware supplied straight off the joint venture's assembly lines.