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CNH Industrial has signed an agreement, subject to clearance from South Africa’s competition commission, to expand its direct presence in Southern Africa’s agriculture and construction equipment sectors. Through this agreement, the company, via a fully-owned legal entity based in South Africa, is seeking to consolidate its direct distribution network with the acquisition of four divisions from CEG – a business unit of Humulani Marketing, an Invicta Holdings company. Once approved, this transaction will mark an evolution for CNH Industrial in the Republic of South Africa, one of the most important markets for the company in Africa and the Middle East, as well as the wider southern Africa area.
By taking full operational management of its commercial distribution and after-market network, CNH Industrial aims to further develop its Case IH and CASE Construction Equipment brands’ presence together with after-market sales and services in South Africa and other Southern African markets, strengthening its position and ties with its customer base. This model is already in place for the company’s agriculture equipment brand New Holland Agriculture as well as its commercial and speciality vehicles business via its IVECO, IVECO ASTRA and IVECO BUS brands.
The business divisions included in the planned acquisition are:
Northmec: South Africa’s most established agricultural equipment distributor and the sole distributor of Case IH equipment and implements;
CSE: a well-established equipment distributor operating for more than 50 years in the market and the sole distributor of CASE tractor loader backhoes and skid steer loaders;
NHSA: a spare parts distributor in Southern Africa mainly focused on agriculture; and
Landboupart: a distributor of spare parts and implements.
In anticipation of final approval by South Africa’s Competition Commission and the subsequent conclusion of the deal, the parties have entered into a transitional period for the business, which sees CEG remain in control of operations.