CNH Industrial to List Truck and Bus Business in Break-Up | TRANSPORT NEWS

Reuters news agency has reported that  Industrial vehicle maker CNH Industrial has decided to split in two and list its truck, bus and engine division in an effort to boost asset values and streamline its businesses.

The plan comes just six years after CNH Industrial was created when Fiat Industrial – spun off from the Italian carmaker – was folded into U.S.-based agricultural and construction machine firm CNH.

CNH Industrial aims to complete the separation by early 2021, creating a company to run agriculture and construction brands such as Case and New Holland and listing a separate unit to manage Iveco trucks, Iveco and Heuliez buses and FPT powertrains.

Monica Bosio, head of equity research at Intesa Sanpaolo-Banca IMI, said the plan should help boost the value of the agriculture side, which is currently trading at a discount compared to competitors.

“The split should also give more appeal to the truck unit as it might become an interesting asset for other operators, despite the pledge by Exor to remain key shareholder in both entities,” she said.

CNH’s top shareholder Exor – the holding group of Italy’s Agnelli family, which also controls Fiat Chrysler Automobiles and premium sports car maker Ferrari – said in a statement it supported the new plan.

“Exor will continue to be the shareholder of reference in both entities following completion of the spin-off process,” it said.

Last year, CNH’s agriculture and construction business had proforma sales of $15.6 billion (12.7 billion pounds), while its so-called “On-Highway” operations generated $13.1 billion.

The group’s most profitable businesses were agricultural equipment and powertrains, which both boasted margins of 8.9% compared with the 2.7% of commercial vehicles.

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