Fiat Industrial, the parent company of CNH Global NV , recently announced that its U.S. subsidiary will be renamed as CNH Global N.V. after the completion of the merger by third quarter 2013
Fiat Industrial is a leading international auto manufacturing company that designs, produces and sells vehicles for the mass market under well-known brands such as Fiat, Alfa Romeo, Lancia, Abarth, the Ferrari and Maserati. It has also formed a strategic alliance with premier auto major, the Chrysler Group, to further expand its geographic presence.
Currently, Fiat Industrial has 88% ownership stake in CNH Global. Earlier in Nov 2012, the company inked a definitive merger agreement to merge the businesses of both Fiat Industrial and CNH Global to form a separate company, organized under the laws of the Netherlands and listed on the New York Stock Exchange. However, for corporate tax purpose, the newly formed company will be based in the U.K. as it has a lower corporate tax rate than Italy.
Based in Amsterdam, CNH Global manufactures agricultural and construction equipment. The company primarily sells and distributes its products through its dealers and distributors spread across 170 countries. On Nov 12, 1999, CNH Global was formed following the merger of New Holland N.V. and Case Corporation. The company has three operating segments – Agricultural Equipment, Construction Equipment, and Financial Services.
CNH Global presently has a Zacks Rank #3 (Hold). Other notable companies in the industry include AGCO Corporation (AGCO - Free Report) and Alamo Group, Inc. (ALG - Free Report) , both carrying a Zacks Rank #2 (Buy), and Kubota Corporation , which carry a Zacks Rank #1 (Strong Buy).