Cnh Industrial accelerates on the spin-off of Iveco which produces commercial vehicles and the title puts the turbo in Piazza Affari. Facts, numbers, rumors and scenarios
In Piazza Affari today Cnh stands out (+ 2.64%) on the hypothesis of an Iveco spinoff in January 2022.
The Cnh Industrial title race (controlled by the Exor group , the holding company of the Italian Agnelli family ) comes in the wake of the rumors of Il Sole 24 Ore , relating to the spin-off project between Iveco, which produces commercial vehicles, and Fpt, which produces powertrains.
“The objective of the Turin group, controlled by Exor”, reads the Confindustria newspaper, would be to “resolve all legal tasks as soon as possible and proceed in the first weeks of 2022, perhaps as early as January”.
The new company will be called Iveco Group – eight brands and Fpt – and will be listed on the Milan Stock Exchange for a value of between 5 and 10 billion.
“We are absolutely on time”, Annalisa Stupenengo, CEO of Fpt Industrial, told the Confindustria newspaper. Furthermore, Stupenengo mentioned “business offers” to accompany a “360-degree change” in the sector.
Iveco is pursuing plans for the spinoff to expand production of electric vehicles, designated CEO Gerrit Marx told Reuters Wednesday. Yesterday Iveco inaugurated a new plant in Ulm, Germany, with Nikola , a US start-up for electric trucks.
Marx reiterated that the process to separate the truck, bus and FPT engine units from CNH Industrial, which will focus on its agricultural and earthmoving activities, will end early next year.
All the details.
THE IVECO SPINOFF FROM CNH
Already in 2019, CNH Industrial announced its intention to split and quote separately its Iveco truck and bus units together with its Fpt engine division to increase the value of its assets and simplify its operations.
The assets included in the spin-off plan – initially referred to as Cnh Industrial's “OnHighway” business – have been renamed Iveco Group.
Iveco Group will include the brands and activities Iveco (heavy, medium and light commercial vehicles), Iveco Astra (heavy duty quarry / construction vehicles), Iveco Bus and Heuliez Bus (buses and coaches), Magirus (fire fighting vehicles), Iveco Defense Vehicles (defense and civil protection vehicles), Fpt Industrial (engine technologies) and Iveco Capital (financial services).
The new company will begin operating as an independent company in early 2022.
AFTER LAST YEAR'S SLOWS
As Il Sole 24 Ore recalls, "the operation was held back by the pandemic in 2020 and by a negotiation with the Chinese of Faw Jiefang (who offered 3.5 billion), also stopped due to pressure from the government".
Faw, the largest Chinese auto manufacturer, with 4 million vehicles sold in the country of the Dragon, had submitted an offer close to 3.5 billion euros, up from the first offer of 3 billion made the year before.
However, in April CNH officially announced that it had stopped discussions with the Chinese company related to the company's On-Highway business and to continue to pursue existing plans in view of the separation of these activities in the first part of 2022.
THE LISTING EXPECTED IN 2022
“The spin off will be followed by listing on the stock exchange, certainly in Milan. A signal for other Italian companies, given the various IPOs abroad in recent months. The enhancement of Iveco, which will become the Iveco Group (eight brands in all with Fpt), should travel between 5 and 10 billion ”highlighted Il Sole 24 Ore .
Iveco Group's designated CEO is Gerrit Marx, who joined Cnh Industrial as President of Commercial and Specialty Vehicles in January 2019. Marx has about twenty years of experience in increasingly important roles in companies such as McKinsey & Company, Daimler AG, Skoda and most recently in the global investment firm Bain Capital.
Francesco Tanzi will also join the new company. The Pirelli manager will join the company created after a spin-off from CNH starting from 1 January 2022. Tanzi will take on the role of Chief Financial Officer of the Iveco Group as soon as the spin-off is effective.
THE ELECTRIC PUSH WITH NIKOLA
Beyond the spin-off from CNH in Iveco's plans, there is the electrical strategy.
“We are electrifying across the board. We are not behind, ”Gerrit Marx told Reuters on Wednesday.
Yesterday Iveco and the US electric truck manufacturer Nikola inaugurated the heavy electric vehicle plant in Ulm, Germany. It will start production by the end of the year.
The first Nikola Tre models produced at the German plant in Ulm will be delivered to selected customers in the United States in 2022.
Iveco and Nikola also confirmed plans to launch hydrogen fuel cell trucks in late 2023, in a deeper push towards alternative fuels for the commercial vehicle industry.
As a sign of Iveco's ambitions, the truck manufacturer signed a memorandum of understanding on Wednesday under which together with partner Nikola it will test and deliver up to 25 vehicles to the port of Hamburg, one of the largest in Europe. The agreement provides for the delivery of the Nikola Tre, which is based on an Iveco platform, throughout 2022.
HOW MUCH THE INVESTMENT IN NIKOLA COST
"The investment in Nikola cost a lot to the parent company of Iveco: 250 million for 7% just before the stock collapsed, about -90% from the highs of the end of June 2020, when the Milton case exploded (yesterday too the stock was in red). Iveco, fourth force in 2020 for market share in 2020 among European manufacturers of commercial vehicles, obviously supported by the multinational agricultural machinery led by Scott Wine, has continued to believe in the partnership with the American startup, aimed at the production of trucks with zero emissions ”, Il Sole 24 Ore recalled.
After the spin-off, Cnh, controlled by Exor, will be Iveco's largest investor.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/come-sara-lo-spinoff-di-iveco-da-cnh/ on Thu, 16 Sep 2021 09:29:24 +0000.