Farm and construction equipment manufacturer
CNH Global NV
) will debut on the New York Stock Exchange on Sep 30. The
announcement was recently made by company's chairman Sergio
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In Nov 2012, Fiat Industrial, the parent company of CNH Global,
inked a definitive agreement to merge its businesses with the
latter. The merged company will be registered under the laws of
the Netherlands and will be listed on the New York Stock
Exchange. However, for corporate tax purpose, it will be based in
the U.K. as the region offers a lower corporate tax rate than
The strategic merger would enable Fiat Industrial to shift its
base from Italy, which has been hit by four recessions since
2001. The successful integration of both the businesses would
fortify the combined entity to compete at the highest level in
the capital-goods sector with adequate flexibility to pursue
inorganic growth at opportune times.
In addition, the combined company is likely to focus more on the
excavator segment as CNH Global had ended its long-term alliance
with Japanese company Kobe Steel, Ltd. and group company Kobelco
Construction Machinery Co., Ltd. on Dec 31, 2012. Post-merger,
the newly formed company would be the world's third-largest
capital-goods company with a product line spanning from Iveco
delivery trucks, New Holland harvesters to FPT ship engines.
Fiat Industrial is a leading international auto manufacturing
company that designs, produces and sells vehicles for the mass
market under well-known brands such as Fiat, Alfa Romeo, Lancia,
Abarth, the Ferrari and Maserati. It also has a strategic
alliance with premier auto major, the Chrysler Group, to further
expand its geographic presence.
The merger of Fiat Industrial and CNH Global is likely to sow the
seeds of a similar endeavor and will serve as a "technical
blueprint" for a likely merger between the former and its
Chrysler division in the U.S.
Based in Amsterdam, CNH Global manufactures agricultural and
construction equipment. The company primarily sells and
distributes its products through its dealers and distributors
spread across 170 countries. On Nov 12, 1999, CNH Global was
formed following the merger of New Holland N.V. and Case
Corporation. The company has three operating segments -
Agricultural Equipment, Construction Equipment, and Financial
CNH Global presently has a Zacks Rank #3 (Hold). Other notable
companies in the industry include
), both carrying a Zacks Rank #2 (Buy), and
), which carries a Zacks Rank #1 (Strong Buy).