CNH & Fiat Industrial To Become One Company?
CNH Global N.V. (CNH) said its board of directors has received a proposal from Fiat Industrial S.p.A. to combine Fiat Industrial and CNH as single Dutch-based company with a single New York Stock Exchange listed stock.
The proposal was made in a letter sent from Sergio Marchionne, chairman of Fiat Industrial S.p.A., to the board of directors of CNH. Fiat Industrial S.p.A. currently owns approximately 88% of CNH's shares.
In his letter, Marchionne said separate Fiat and CNH entities, “is cumbersome and value constraining in a number of respects.” Further, he said the structure “also hinders the group’s ability to capitalize on strategic opportunities that arise from time to time.”
Among the benefits of a single entity structure, Marchionne listed “guaranteeing access to a stable supply of engine know-how and industrial capabilities by being fully aligned with FPT’s powertrain operations.”
CNH said its board of directors expects to evaluate the proposal through a committee of independent directors which would retain independent financial and legal advisors to assist it.