CNH Industrial pursues "transformational" investments (updated)
15/03/2023 18:21
(Adds exec's comments, context)
MILAN, March 15 (Reuters) - CNH Industrial CNHI.MI is
aiming to secure major M&A deals as it pursues innovation in its
farm machinery and construction equipment businesses, the head
of its investment arm Ventures told Reuters on Wednesday.
The Italian-American vehicle maker is aiming for "one or two
transformational investments in coming months and years",
Michele Lombardi, the group's senior vice-president for
Corporate Development & Venture Capital said.
CNH in 2021 bought U.S. based precision farming group Raven
for $2.1 billion. The deal came before CNH spun off its
truck-making unit, now separately listed as Iveco Group
IVG.MI , at the beginning of last year to focus on farm
machinery and construction equipment.
In an interview after CNH earlier on Wednesday announced the
acquisition of a controlling stake in Bennamann, a UK-based
company working on ways to capture, repurpose and store methane
emissions for energy use, Lombardi said market turbulence
created by troubles at Credit Suisse CSGN.S and Silicon Valley
Bank were not hampering CNH's willingness to invest.
"We are very motivated to carry on with our investments," he
said. "We've got a very significant cash investment capacity and
we are committed to technological innovation."
Lombardi added that the group had three channels available
for M&A deals, namely venture capital, mid-size deals worth
around $100-200 million and transformational investments.
(Reporting by Giulio Piovaccari, editing by Gavin Jones,
Kirsten Donovan)
((giulio.piovaccari@thomsonreuters.com))