New Holland takes over tractor rival

12 November 1999




New Holland takes over tractor rival

TODAY (Fri) will see the completion of New Hollands take-over of rival tractor and farm machinery maker Case.

The move follows NHs offer to Case shareholders of $55 a share.

The rapid completion of the deal follows agreement by both companies to divest certain parts of their business to satisfy competition authorities on both sides of the Atlantic, said New Holland executive vice-president and chief marketing officer Tom Kennedy.

Speaking at this weeks Agritechnica Show in Hanover, Germany, Mr Kennedy said the company would divest certain product lines in North America and Europe. That includes the Case CX and MXC tractor range and the Doncaster UK production line. The company must also comply with more specific conditions in Europe because of the high combined market shares.

Meanwhile, in the short-term, all products will continue to be available for sale in all markets.

"New Holland and Case product lines will be promoted aggressively. But by both companies working closer together we will benefit customers, dealers, shareholders and employees in a difficult world market," said Mr Kennedy.

Good long-term prospects

Although the short-term outlook is not good for the machinery industry, the longer-term prospects are positive, he said.

"Demand for food will increase due to a combination of population growth and dietary transition. There is no more land. Biotechnology is years, if not decades, away from application in production agriculture.

"Productivity increases will come from increased mechanisation in developing markets and more sophisticated farming methods in Europe and America," he said.

&#8226 Further details see page 65. &#42

available for sale in all markets.

"New Holland and Case product lines will be promoted aggressively. But by both companies working closer together we will benefit customers, dealers, shareholders and employees in a difficult world market," said Mr Kennedy.

Good long-term prospects

Although the short-term outlook is not good for the machinery industry, the longer-term prospects are positive, he said.

"Demand for food will increase due to a combination of population growth and dietary transition. There is no more land. Biotechnology is years, if not decades, away from application in production agriculture.

"Productivity increases will come from increased mechanisation in developing markets and more sophisticated farming methods in Europe and America," he said.

&#8226 Further details see page 65. &#42


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