Because Cnh swerves on the stock market for Iveco
Cnh loses 5% on the stock market, Exor also down: the market does not like the stop to negotiations with Faw for the sale of Iveco
Iveco remains Italian, but the news is not appreciated by the market which beats Cnh with a minus 5%.
Yesterday, the company controlled by Exor, the holding company of the Agnelli family, announced the stop to negotiations with the Chinese Faw for the sale of Iveco, due to different assessments on the value of the company.
All the details.
CNH ON THE BAG
The stock of Cnh Industrial, at the time of writing (16.15) loses 4.35%, to 12.72 euros. For the whole morning the stock has lost more than 5%.
Shares in Exor also fell, losing more than 1% at 16.30 to 72.70 euros.
THE STOP TO NEGOTIATIONS WITH FAW
The market punishes the stop of CNH negotiations with Faw for the sale of Iveco. The company has officially announced that it has stopped discussions with the Chinese company related to the company's On-Highway business and to continue to pursue existing plans with a view to the separation of these activities in the first part of 2022.
THE REASONS FOR THE STOP TO NEGOTIATIONS
The Italian company, controlled by Exor, would not have considered the offer adequate from an economic point of view and beyond.
THE ECONOMIC OFFER
Faw, the largest Chinese auto manufacturer, with 4 million vehicles sold in the country of the dragon, would have submitted an offer close to 3.5 billion euros , up from the first offer of 3 billion made last year.
CELEBRATE THE UNIONS
Reasons aside, if the market beats Cnh, the unions rejoice, evaluating "positively the news of the failure to complete the negotiation", adding that the Government is "ready to sit down at the table to intervene to protect and maintain this production in Italy".
THE POSITION OF THE GOVERNMENT
“We welcome and value the news positively. The Italian government has followed the affair with attention and active discretion because it considers the production of heavy vehicles on road to be of national strategic interest ”, commented the Minister of Economic Development, Giancarlo Giorgetti.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-cnh-sbanda-in-borsa-per-iveco/ on Mon, 19 Apr 2021 14:45:00 +0000.