New Holland and Case to merge
By FWi staff
FARM machinery makers Case and New Holland are to merge. Both brands will continue.
In a deal valuing Case at around US$4.3 billion (£2.65bn), New Hollands parent Fiat will take the majority share of 71% of the new company.
The merged company expects to make savings of $400-500 million over the next 3-4 years by integrating production, purchasing and support activities.
It sees the lions share of its future growth in construction equipment and the merged companies expanding financial services operations.
The two companies regard their product lines, geographical distribution and technology as complementary.
The companies point out that New Holland leads the farm machinery business in Europe, Brazil, Africa, the Middle East, Japan and south-east Asia, while Case is well-established in the rest of Latin America, Eastern Europe and the CIS.
In product terms, Case tractors, for example, suit the larger customer, while New Hollands smaller machines are popular with more traditional farmers, say the companies.