FILE PHOTO: An Iveco truck is seen at the IAA Commercial Vehicles trade show in Hanover, Germany September 22, 2016. REUTERS/Fabian Bimmer/File Photo
MILAN (Reuters) – Industrial vehicle maker CNH Industrial (CNHI.MI) CNH.N said on Tuesday it planned to split its operations in two and list its truck, bus and engine division in a bid to boost the value of its assets and create more focused businesses.
CNH Industrial aims to complete the revamp by early 2021, creating a company to run its agriculture and construction operations and another publicly listed unit to run the truck, bus and engine assets.
The plan, dubbed ‘Transform 2 Win’ will reduce operating costs and increase the group’s asset base “through targeted restructuring actions”, CNH Industrial said in a statement.
It said full implementation of the plan was expected by the end of 2022 with total pre-tax charges expected between $450-$500 million through 2022.
CNH top shareholder Exor – the holding group of Italy’s Agnelli family, which also controls Fiat Chrysler (FCHA.MI) and premium sports car maker Ferrari (RACE.MI) – said in statement it supported the new business plan.
“Exor will continue to be the shareholder of reference in both entities following completion of the spin-off process,” it added.
In a separate statement, CNH Industrial said it planned to enter a strategic and exclusive partnership heavy-duty trucks with U.S.-based Nikola Corporation.
The Italian-American group will take a $250 million strategic stake in Nikola, it said.
Milan-listed shares in CNH Industrial rose as much as 1% after statement was issued, before reversing gains. They were down 2.5% by 1040 GMT.
Reporting by Giulio Piovaccari, editing by Valentina Za and David Evans