Fiat shareholders approved a de-merger plan that would separate Fiat’s automobile business from other businesses and create a separate company Fiat Industrial, which would include construction and agricultural equipment giant Case New Holland. After the split, the two companies would be listed separately on the Milan Stock Exchange, beginning Jan. 3, 2011.
“The de-merger will provide strategic and financial clarity to both businesses and enable them to strategically develop independently of each other,” said Fiat.
Stock analysts said CNH Global shares have risen 70 percent since the end of June in anticipation of buyout options for the company under Fiat’s reorganization. Fiat owns 89 percent of CNH.
Fiat’s automobile assets, including Fiat car, sports cars Alfa Romeo, Ferrari and Maserati, and Fiat’s partial ownership of the Chrysler Group will remain under Fiat SpA, while CHN and Iveco will become part of Fiat Industrial, which has attracted interest from potential buyers including German automotive giant Daimler AG, according to European Internet reports.
CNH’s second-quarter construction equipment sales rose to about $790 million compared with $547 million a year earlier.
