MILAN Nov 26 Italian truck and tractor maker
Fiat Industrial and its U.S. unit CNH confirmed
on Monday they had agreed to merge, creating the world's
third-largest capital goods company by sales.
The two companies reached a preliminary agreement for a
paper-and-cash deal for Fiat Industrial to buy the 12 percent of
CNH it did not already own on Nov. 19. The merger, now approved,
will be effective in the second quarter of 2013.
The two groups will be merged into a newly-formed company in
which CNH shareholders will receive 3.828 shares, and Fiat
Industrial shareholders one share.
The new company - which has not been named yet - will move
its main listing to New York, and will "use its reasonably best
efforts" to keep Milan as a secondary listing. Fiat Industrial
was spun off from sister company Fiat in 2011 and is
controlled by Italy's Agnelli family.