Fiat Industrial proposes CNH farm business merger

4:10 AM, May 30, 2012   |    comments
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MILAN -- Fiat Industrial SpA has proposed a full merger with its U.S.-based CNH farm and construction business.

Fiat Industrial said in a statement Wednesday that the goal of the merger would be to simplify the company's structure to attract international investors, improve its credit rating and facilitate growth.

It said expected cost savings are minimal.

The proposal calls for the new company's main listing to be on the New York Stock Exchange with a secondary listing in Europe. It would be based in the Netherlands.

Shareholders must approve the deal.

Fiat Industrial, which spun off from the Fiat auto business in 2010, owns 88 percent of CNH.

The Associated Press

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