Italian company, Fiat is learning what so many companies have known for years and that is, it never hurts to have a New York presence as a way to lure investors and expand your business. According to article in Bloomberg, Fiat Industrial SpA, the truck and tractor manufacturer that carmaker Fiat SpA spun off in 2011, plans to merge with its CNH Global NV unit and move its primary listing to New York to lure more investors worldwide.
Fiat Industrial, which controls the tractor maker through an 88 percent stake, proposed to CNH's board the creation of a new company in a share exchange that wouldn't include a premium for either companies' investors, the Turin, Italy-based company said in a statement. The transaction would create the world's third-largest capital goods company, according to Fiat Industrial, with a product range that includes Iveco delivery trucks, New Holland harvesters and FPT ship engines.
Fiat Industrial Chairman Sergio Marchionne targets 25 billion euros ($31.1 billion) in sales this year, including Amsterdam-based CNH. Fiat, which owns 58.5 percent of U.S. auto manufacturer Chrysler Group LLC, aims to merge the two car makers to boost revenue to more than 100 billion euros in 2014. Marchionne hasn't disclosed yet where the combined entity
will be listed and based. Fiat Industrial rose as much as 5.7 percent to 8.34 euros and traded 1.9 percent higher as of 12:41 p.m. in Milan, the best performer today in the Bloomberg Europe Autos Index.
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