FAW’s proposal was turned down by CNH Industrial and, as a result, by its subsidiary FPT Industrial. According to the concise CNH Industrial release, “CNH Industrial confirms that it is has terminated discussions with FAW Jiefang with regard to the Company’s On-Highway business, and is continuing to pursue its existing plans for a spin-off of these activities in early 2022.
CNH Industrial and FPT Industrial terminated discussione with FAW
CNH Industrial believes there are significant opportunities to develop its On-Highway business by accelerating the deployment of ever more sustainable transport solutions and infrastructure, in line with the EU’s Green Deal ambitions”.
Reuters wrote that “Shares in CNH Industrial were down more than 4% after the vehicle and equipment maker said on Saturday it had ended talks to sell truckmaker Iveco to China’s FAW Jiefang.”
FAW Jiefang is a truck manufacturing company headquartered in Changchun, Jilin, China, and a wholly owned subsidiary of FAW Group. It is the largest manufacturer of heavy trucks in China.
As a result, all speculation about FPT’s future has come to an end. According to rumors, the engine division, which would be spun off with IVECO, as well as the truck and bus division, were targets of concern. In China, FPT Industrial has a joint venture with SAIC that is growing in market share. So all we have to do now is wait for investor reaction once IVECO and FPT Industrial are listed on the stock exchange. In September 2019 FPT Industrial came out of Wall Street as one with Iveco at the end of the Capital Markets Day. The much rumored spin-off materialized at the NYSE (New York Stock Exchange) on last Tuesday at 11 am, local time, in the words of Hubertus Mühlhäuser: Iveco and Fpt Industrial will constitute an autonomous entity and from the first quarter of 2021 they will be listed independently on the Stock Exchange. Unless new investors come forward…