Kobelco Construction Machinery, a subsidiary of Kobe Steel, will acquire CNH Industrial's construction equipment business in Europe and the United States. It plans to acquire a 70% stake in the business by the end of next year, investing approximately ¥110.5 billion for the acquisition and approximately ¥114.5 billion including related costs. Revenue is expected to double to approximately ¥900 billion.
Kobe Steel announced that its subsidiary Kobelco Construction Machinery will acquire CNH Industrial's construction equipment business. The acquisition will proceed through the purchase of a 70% stake by the end of next year. The acquisition price is $700 million (approximately ¥110.5 billion), and approximately ¥114.5 billion including related costs will be invested.
CNH's construction equipment business operates plants in the United States, Europe, Japan and other markets, manufacturing medium- and large-sized mining equipment as well as compact construction equipment. Kobelco Construction Machinery has been expanding its presence in Europe, the United States and other regions.
Following completion of the acquisition, revenue is expected to double to approximately ¥900 billion, with integration synergies from CNH's construction equipment business anticipated.