Kobelco to take 70% stake in CNH’s construction equipment business

Under the agreement, CNH Industrial N.V. is expected to transfer its construction equipment operations to a newly established company, after which Kobelco Construction Machinery Co., Ltd. acquires 70 per cent of the new entity’s shares. CNH remains involved as a minority shareholder, and the two parties say they intend to build a partnership that draws on their respective strengths. Completion is subject to competition-law clearances and other customary closing conditions.

No cranes in the package

Crane professionals should note what the deal does and does not contain. The CNH construction equipment business operates the global CASE Construction Equipment and New Holland Construction brands, together with Eurocomach, which supplies compact construction equipment in Europe. That is a portfolio of earthmoving machinery, from compact machines to large equipment for infrastructure and public works – no cranes change hands. What changes is the scale of the group behind the Kobelco crane line: the transaction gives the crawler crane and excavator manufacturer a much larger installed base and a sales and service network that is strongest in North America, Europe and Latin America, where CNH’s construction equipment arm – part of a company with roots going back more than 180 years – is long established.

Aftermarket and technology ambitions

Kobelco says the acquisition is aimed at building a more geographically balanced business and reaching more customers in key and growth markets. It plans to expand its parts and aftermarket services on the back of the larger installed base, and to broaden its range of jobsite solutions by combining CNH’s global navigation satellite system (GNSS) technologies with its own digital construction solutions, including the K-DIVE teleoperation platform. The company points to growing demand driven by infrastructure renewal, urbanisation and energy-related investment, alongside pressure to address labour shortages, safety and productivity on site.

No immediate change for customers

For now, Kobelco stresses, nothing changes for customers or business partners of either party: aftermarket services, replacement parts supply, warranties and points of contact for product enquiries all continue as before, as do current procurement policies and terms of business. Affected customers will be notified if that alters as the transaction progresses. Details of products and services arising from the future collaboration, including availability by region and launch timing, are to be announced once plans are finalised.