Fiat Industrial SpA said a special committee of its CNH Global NV unit has not yet approved Fiat’s merger proposal, the company is reporting on its website.
“Fiat Industrial has not yet received a response from the Special Committee of the Board of Directors of CNH Global N.V. to the proposal it has submitted on May 30,” the company said in a statement. “As is normal practice in these circumstances, the CNH Special Committee, which was constituted for the sole purpose of evaluating the proposal, is engaged in an extensive due diligence process, including presentations by FI management of the business plans of Iveco and FPT Industrial. These presentations were just completed.”
Fiat Industrial said it expects to provide an update on the merger process when it announces the group’s third-quarter results later this month.
Fiat Industrial plans to merge with CNH and move the combined company’s primary listing to New York from Milan, Bloomberg Business Week is reporting. The manufacturer is reorganizing in response to European economic concerns. Its Iveco truck unit recently announced plans to shut five plants in Europe by the end of 2012.
Fiat chairman Sergio Marchionne said he hopes to complete the CNH deal this year. Fiat already holds an 88-percent stake in CNH, which owns New Holland and Case.