Exor: CNH agrees to sell 70% of construction, 20.2% of sales, 12.3% of segment adjusted operating profit

On 9 November, CNH signed the sale of 70% of its construction business to Kobelco for $700m in cash. Over nine months, this business made 20.2% of CNH's industrial sales, but 12.3% of the adjusted operating profit of its two businesses (Opulion calculation). For Exor, which held 26.9% of CNH's economic rights at 30 June, the sale would refocus its third-largest portfolio company on agriculture.

Why it matters for Exor shareholders: at 30 June, Exor carried CNH at €3,616m, with 26.9% of the economic rights and 45.6% of the voting rights, according to its half-year report. In proportion to its stake, about $188m of the $700m would correspond to Exor (Opulion calculation: 26.9% × $700m), but this money would stay at CNH, which plans to use it to reduce its debt. The net debt of its industrial activities stood at $2,543m at 30 September, and $700m represents 27.5% of it, as a scale reference, before adjustments and costs (Opulion calculation). For Exor, the sale would bring in no money: it would refocus its third-largest portfolio company on farm machinery, with 30% of a construction joint venture.

Two measures describe the price. The enterprise value, $1bn, is the price of the whole business, debt included. The $700m is 70% of it, to be paid in cash and adjusted at closing for net debt, working capital and other customary items. Kobelco Construction Machinery, a subsidiary of Kobe Steel, would hold the majority of the joint venture, CNH would keep 30%, and each party commits to keep its shares for three years. The CASE Construction, Eurocomach and New Holland Construction brands would move into the joint venture. Case IH, New Holland, STEYR, precision technology and the CNH Capital finance arm stay with CNH, which will continue to finance the joint venture's customers.

The third quarter does not sum up the business being sold. Construction made $65m of adjusted operating profit in the quarter, against $14m a year earlier, an 8.4% margin, above agriculture's 6.0%, and 27.3% of the profit of the two businesses (Opulion calculation: 65 out of $238m). The release attributes the rise mainly to US tariff refunds recognised in the quarter and to lower selling, general and administrative expenses, partly offset by lower volumes in South America. Its outlook section puts the net refund benefit for construction at $39m in the quarter, $47m gross less $8m reinvested. Without this net benefit, about $26m would remain, a margin of about 3.3% (Opulion calculation: (65 − 39) / 777). Over nine months, the construction margin is 2.3%, against 4.2% for agriculture.

For Exor shareholders, three pieces of evidence will come in order. CNH's 2026 annual results will show whether the fourth quarter delivers the free cash flow implied by the raised forecast. Closing, expected by the end of 2027 subject to approvals, will then set the adjusted price, with a further post-closing adjustment according to the Form 8-K. The third, slower, comes back to Exor: what CNH, once the sale has closed, will pay it in dividends, after €31m in the first half.