Chinese-style Iveco makes Cnh of Exor whiz on the stock exchange

Chinese-style Iveco makes Cnh of Exor whiz on the stock exchange

Cnh runs on the stock exchange in the wake of rumors about the offer of the Chinese group Faw for 100% of Iveco

Iveco could soon pass into foreign hands. Chinese, precisely. Faw, the first car manufacturer in China, would have concluded the due diligence on Iveco and could soon formalize its offer for the company of the CNH group of Exor, putting up to 3.5 billion euros on the plate.

An offer, however, that does not seem to be appreciated by the government, which could also resort to the Golden Power. In the meantime, Cnh runs on the stock exchange, like the rest of the Exor galaxy.


Let's start with the performances in Piazza Affari. The stock of Cnh, at 15, grows by 1.82% to 13.18 euros. A positive day also for Exor, the parent company of Cnh: the holding company of the Agnelli family earns, at the same time, 1.57% at 72.56 euros. Stellantis also grows by over 1.5%.


Indiscretions on a possible offer for 100% of Iveco coming from the Chinese company Faw are driving the title of Cnh and Exor. Founded in 1953 in the northeastern city of Changchun, Faw is the first car manufacturer in China and operates under the Hongqi, Jiefang and Besturn brands.

The Chinese company, which could present the offer later this week (April 15 most likely) intends to acquire all of Iveco's commercial vehicle business, including trucks and buses, as well as a minority stake in Fpt's engine division. On the other hand, military vehicles (armored and multi-role vehicles, tactical and logistic trucks) and the 7% stake in Nikola are excluded.


The Chinese could put up to 3.5 billion euros on the plate.

In line (or almost) with Equita's calculations: the broker, writes MF-Milano Finanza , assumes a valuation of 3.5 billion euros for only 100% of Iveco ex-Nikola, but "the inclusion of a majority stake in Powertrain, which we value approximately 1.4 billion (net of intercompany), could suggest a deal with lower valuations ”.

"Regardless of the evaluation, the exit from the business truck would represent an acceleration towards the transformation into a pure agricultural player (also involved in construction), removing the holding discount that Cnh has always suffered", adds Equita,


Meanwhile, Exor rubs his hands and prepares to receive a rich dividend. Again according to Exor's calculations, with the sale of Iveco the net cash of Cnh would rise to over 3 billion, assuming an extraordinary dividend of more than 1.5 billion dollars.

Equita judges the stock as "buy" with a target price of 15 euros.


May dividend dreams collide with Golden power? If it is true that, according to the SIM, the exclusion of military vehicles from the negotiations should avoid the application of the golden power, it is also true that the government is thinking that this power is also extended to the auto sector.


On the other hand, the Minister of Economic Development, Giancarlo Giorgetti, had hypothesized a possible intervention by the Government: “As you know, the golden power is a complex procedure that is activated when the facts occur. At this stage I can say that the issue is objectively a matter of golden power, but this does not mean that we will adopt it ", said the Minister of Economic Development , adding:" I consider a certain type of production strategic, which can be important for the NRP. . I am well aware of the risks of delocalization of the automotive supply chain, induced by new technologies, and consequently we are working to identify the measures to keep countering this phenomenon and to attract investments in Italy but above all to maintain production on the national territory, an important slice of the 'Italian metalworking industry, both in terms of added value and of workers ”.

This is a machine translation from Italian language of a post published on Start Magazine at the URL on Tue, 13 Apr 2021 13:48:51 +0000.