Agricultural and construction equipment CNH Global NV (CNH) recently acquired full ownership of L&T – CASE Equipment Private Limited. Established in 1999, the business was an unconsolidated joint venture with Larsen & Toubro Limited to manufacture and sell construction and building equipment in India. The new wholly owned company will take the name Case New Holland Construction Equipment India Private Limited.

The financial terms of the deal were not disclosed. Case New Holland Construction Equipment India Pvt Ltd will join the parent company’s existing agricultural equipment base, New Holland Fiat India Pvt Ltd, located in Greater Noida. This base manufactures tractors, transmissions, engines and 4 wheel drive axles for CNH’s agricultural and construction equipment brands.

Employing more than 600 people, CNH Global NV operates a production facility in Madhya Pradesh in central India and a distribution network of 56 dealers and 144 outlets. This facility currently builds backhoe loaders and vibratory compactors. This plant when integrated with CNH manufacturing network, will introduce its world class manufacturing methodologies to bring it in line with CNH Production System and Quality Standards.

CNH Global NV plans to continue investing in its Case construction equipment product offering and strengthen the sales network to meet the needs of construction businesses in the important local and export markets.

Earlier, in its Annual General Meeting of Shareholders which was recently held in The Netherlands, the Board decided not to issue a dividend . The Board also elected a new director, Mr. Thomas J. Colligan, and appointed Ernst & Young LLP as independent auditors for the company.

We currently have a Neutral recommendation on CNH Global NV supported by a Zacks #3 Rank, which translates into a short-term rating of Hold.

 
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