Kobe Steel's construction machinery unit, Kobelco Construction Machinery, has agreed to buy 70% of CNH Industrial's construction equipment business for US$700m in cash, the two companies said on 9 November 2026.
Why Kobelco Construction Machinery Co., Ltd. (Kobe Steel, Ltd.) is buying CNH Industrial construction equipment business (70%)
Kobe Steel said combining the CNH business's brands, broad product range and sales and service network in North America, Europe and Latin America with Kobelco's hydraulic excavator, crane and construction digital technology would strengthen its global business and diversify its regional portfolio, with aftermarket parts and services a key growth area. CNH said it would use the proceeds to reduce debt and would become the largest pure-play agricultural machinery maker.
“This is a tremendous opportunity for our team, our dealers, and our customers.”
Deal terms and financing
The transaction values the construction equipment business at an enterprise value of US$1bn. CNH will transfer the business to two new companies, one in Basildon, England and one in Racine, Wisconsin, and Kobelco will acquire 70% of each for US$700m, subject to adjustments for net debt, working capital and other customary items. CNH will retain 30% and remain a strategic partner, and both sides are subject to a three-year lock-up. Kobe Steel will fund the purchase with bridge loans from its main banks.
Regulatory approvals and timing
Completion is subject to competition approvals in various jurisdictions and other customary conditions. CNH expects closing by the end of 2027; Kobe Steel's filing points to its fiscal third quarter of 2027.
Market context
The business sells excavators, loaders, graders, dozers, compact track loaders, skid steer loaders and backhoes, and had revenue of US$2,956m and EBITDA of US$167m in 2025. Humayun Chishti, president of CNH's construction segment, is expected to lead the joint venture as chief executive. CNH, whose parent company is registered in Basildon, will keep its Case IH, New Holland, STEYR and CNH Tech brands.
