Fiat Industrial plan CNH ‘new company’ merger

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.
July 13, 2012 Read time: 2 mins
2729 Fiat Industrial (FI) plans to create a new holding company by merging with 1595 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.

FI also own trucks manufacturer 2409 Iveco and components company 2723 Fiat Powertrain Technologies (FPT), while CNH markets construction equipment under the Case and 5895 New Holland brands, as well as Kobleco for some excavators in North America.

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”.

For more information on companies in this article

Related Content

  • CECE Congress focuses on future of construction
    April 10, 2012
    The bi-annual CECE Congress was held in Spain when participants looked forward in a bid to see what will happen in the next ten years Growth markets such as China, India and Brazil offer big opportunities to European construction equipment manufacturers. As companies, particularly those from China, start to expand outside their own countries the competition for business will increase, and it has been claimed that there is no such thing as 'the global market', rather it is the sum of hundreds, if not thousa
    Read More
  • Electromobility in the off-highway industry
    September 14, 2020
    Electrification brings many benefits to off-road machines including zero exhaust emissions, improved efficiency and significantly reduced noise levels, so why aren’t we seeing more of them yet? Zeyd Okutan, Volvo Penta’s product manager responsible for the company’s Industrial Segment Electromobility Product Planning and Strategy, explains what direction the industry is heading in and what needs to happen before electric-powered machines become the norm
    Read More
  • Innovations in earthmoving machines
    March 16, 2012
    The earthmoving machine market is seeing major innovations for 2012 - Mike Woof reports. The early part of 2012 is seeing a whole array of new earthmoving machines come to market from a vast range of manufacturers. Companies from China, Europe, Japan, South Korea, Turkey and the USA will all be unveiling new earthmoving equipment at the upcoming Intermat exhibition, with innovative emission compliant engine and cooling technology.
    Read More
  • Merger creates Ennis Flint
    March 2, 2012
    US-based Ennis Traffic Safety Solutions, parent company of UK-based road safety products manufacturer Ennis Prismo, is merging with Flint Trading to create Ennis Flint. Steve Vetter has been named the new company's chief executive and Matt Soule as chief financial officer.
    Read More

Highlighted Content