Italy’s CNH Industrial sets up investment arm to spur innovation By Reuters
© Reuters. FILE PHOTO: Flags with CNH Industrial logo are pictured outside CNH Industrial building in Turin, Italy, February 5, 2020. REUTERS/ Massimo Pinca
MILAN (Reuters) – CNH Industrial said on Tuesday it had grouped its strategic investments in a newly-established investment arm, called CNH Industrial Ventures, as the farming machine and construction equipment maker prepares to unveil its business plan.
CNH Industrial will hold later on Tuesday a capital markets day to showcase its strategy in agriculture and construction vehicle businesses, after at the beginning of this year completing a spin-off of its lower-margin truck, bus and engine operations, separately listed as Iveco Group.
CNH Industrial Ventures builds on the group’s existing minority stakes, including in agricultural technology company Augmenta and fully-electric autonomous tractor company Monarch Tractor, and will also help it to seek investment opportunities in relevant development fields, CNH Industrial said.
“With the aim of strengthening the company’s position as an innovation leader in the agriculture and construction segments, these investments and collaborations will focus on areas including alternative propulsion, digital, autonomy, robotics and other relevant disruptive technologies,” it said in a statement.
“Strategic investments in digital and technology startups have and will continue to support the company’s organic capabilities and product offering,” it added.
Milan-listed shares in CNH Industrial were down 0.5% by 1310 GMT, underperforming a 0.2% drop at Italy’s bleu-chip index.
The group’s Senior Vice President of Corporate Development Michele Lombardi said CNH Industrial Ventures would take a partnership approach.
“We aim to leverage our extensive competencies, market reach and asset base to help rapidly growing companies that are redefining the future of agriculture and construction,” he said.
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