TURIN, Italy, July 9 Italian truck and tractor
maker Fiat Industrial's shareholders approved a merger
with its U.S. division CNH on Tuesday in what may be a
template for a later link-up between sister company Fiat
Italian companies with global operations like Fiat, Fiat
Industrial and Autogrill are looking for ways to
maximise foreign revenue to compensate for flat or falling sales
in a home market mired in recession for the past two years.
The newly-created capital goods company aims to expand its
business by introducing its truck brand Iveco to the United
States, said Fiat Industrial Chairman Sergio Marchionne.
Another top priority is to bolster its presence in the
excavator segment after CNH ended some of its relationships with
Japan's Kobelco, said Marchionne.
"We have to re-organize this," he said at a press
conference, adding that it was too soon to talk about new
Marchionne said he would remain chairman and a chief
executive would be named at the end of the third quarter. The
company currently has no CEO and Richard Tobin serves as chief
APPROVAL AS PLANNED
Fiat Industrial shareholders approved the cash-and-share
merger offer, allowing it to buy the 12 percent of CNH it does
not already own to fully capture the U.S. business's higher
The new company will be listed in New York and Milan, will
be registered in the Netherlands and will have its tax residency
in the UK.
It will be called CNH Industrial, dropping the word "Fiat",
and its center of gravity will shift sharply away from Italy,
where Fiat was founded 114 years ago.
Marchionne confirmed that CNH Industrial "is still one of
the technical blueprints" for a future Fiat-Chrysler tie-up,
adding that nothing about the car company had been decided.
"Let's not move too quickly here," said the executive, who
is also CEO of both Fiat and Chrysler.
CNH shareholders meet to approve the tie-up on July 23.
The new company will introduce a "loyalty share" whereby
investors who voted at Tuesday's meeting would receive two votes
per share if they hold them to the completion of the merger.
Fiat Industrial's controlling shareholder, Exor,
will see its stake diluted after the merger but will stay in
control because its voting rights will increase.
Fiat is also examining a U.S. listing after a
planned merger with U.S. automaker Chrysler, in which it owns a
A decision on where Fiat-Chrysler will have its headquarters
will be extremely sensitive politically because Fiat is Italy's
largest private-sector employer.