The subsidiary that Fiat SpA, the carmaker created in 2011, Fiat Industrial SpA, announced its plans to merge with its CNH Global NV unit and then move its primary stock listing to New York in hopes of attracting a larger base of worldwide investors.
Fiat Industrial has an 88 percent interest in CNH, manufacturer of tractors, and it was Fiat that proposed the merger to the CNH board. The proposal of this newly merged company states that there would be a share exchange but not a premium for either of the company’s investors.
If the proposal is followed through, the new company will be the world’s third largest capital goods firm, says Fiat Industrial. Products will range from Iveco delivery trucks, New Holland harvesters and FPT engines for ships. According to Chairman Sergio Marchionne Fiat Industrial is aiming for 25 billion euros worth of sales this year if the Amsterdam-based CNH is included.
“The deal makes sense as it simplifies the structure of the company,” said Emanuele Vizzini, chief investment officer of Investitori Sgr in Milan. “It’s is also a sign of Marchionne’s center of gravity moving to the U.S.”
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