The merger of Case Corp. and New Holland was finalized this month, following approval by the U.S. Department of Justice and the European Union.
In accordance with the approval, Case must sell Kansas-based Hay & Forage Industries, a joint venture with Agco Corp. New Holland must divest its Versatile four-wheel-drive tractor line and Genesis two-wheel-drive tractor line, along with its Winnipeg, Canada, plant where the lines are made.
In Europe, Case will sell its Fermec backhoe/loader, industrial, CX and MXc tractor lines, along with the plants that make them in Manchester and Doncaster, England. Case will also sell a hay baler line in Germany, while New Holland will sell a combine harvester product line in Italy and will open its European dealerships to competitors.
The companies will have a specified period of time to negotiate the sale of the lines, which represent only about 3 percent of their combined 1998 revenues of $12 billion, officials said.
The companies expect to realize close to $500 million in annual cost savings after three or four years. Upon completion of the deal, Case shareholders will receive $55 per share in a deal that consists of $4.6 billion in equity and $1.4 billion in assumed debt.
