Fiat Industrial (FI) plans to create a new holding company by merging with CNH, the construction and agricultural equipment manufacturer it already has a controlling 88% stake in. Under the FI plans the combined new holding company would be incorporated in the Netherlands, with a primary stock market listing in New York and a secondary listing in Europe.
Under the FI plans the combined new holding company would be incorporated in the Netherlands, with a primary stock market listing in New York and a secondary listing in Europe.
FI also own trucks manufacturer
Commenting on the new merged holding company plans, FI chairman Sergio Marchionne said: “The proposed transaction is a natural extension of the process of simplification of Fiat World.”
The exchange ratio between existing shares in FI and CNH and the new company will be determined by stock market prices in March and April this year, before the idea of a merger was first mooted.
The merger would have to be approved by both companies' boards. However, FI said it will vote all of its shareholdings in CNH in favour of the transaction. The company said its plans would have “no impact on operations or headcounts”.
