The chairman and chief executive of Agco Corp. (AGCO) said Friday his farm equipment company isn't pursuing the purchase of competitor CNH Global NV (CNH, NHL.XE).
Martin Richenhagen said his remarks this week to Italian business publication MF about Agco's interest in CNH were purely hypothetical. He said Georgia-based Agco isn't engaged in talks with CNH nor does he believe the subsidiary of Italian auto maker Fiat SpA (F.MI, FIATY) is on the market.
"Whenever I'm asked if I'm interested in buying CNH, the answer is always: 'Yes, but I don't believe they're for sale,'" said Richenhagen in an interview with Dow Jones Newswires.
CNH, which also produces construction machinery, is the world's second-largest manufacturer of farm tractors and combines behind Deere & Co. (DE). CNH, which is based in suburban Chicago, builds farm equipment under the brand names Case IH, New Holland and Steyr.
Agco is a distant third in the global farm-machinery market, though it is the leading tractor company in Brazil, one of world's largest producers of farm commodities. Agco's brands include Massey Ferguson, Challenger, Fendt and Valtra.
Rumors about the sale of CNH or Fiat's commercial truck unit Ivecco have percolated since Fiat gained a stake in U.S. auto company Chrysler Group LLC in 2009. Some analysts have speculated that Fiat might sell CNH and Ivecco to generate cash for its Chrysler investment.
In the aftermath of the MF report about Agco's interest in CNH, Fiat Chief Executive Sergio Marchionne reiterated that CNH isn't for sale.
"No, I don't want sell it," Marchionne said this week in an interview with Dow Jones Newswires. "There is no reason to sell it. CNH is a great business."
In January, Fiat will split into two separately listed companies, one for its automotive business and the other comprising CNH and Iveco. Observers have said the reorganization of the company further diminishes the chances that Fiat would sell either CNH or Ivecco.
Richenhagen said Agco remains interested in acquisitions, but considers the outlook for deals next year is highly limited.
Agco last month agreed to pay $91 million for the 50% stake in combine company Laverda that it didn't already own. The Italian company has been building combines for Agco in Europe since 2004. Agco bought its original 50% stake in Laverda in 2007.
Agco last month also said that it acquired a 50% stake seeding and tillage implements sold by Amity Technology LLC.
Agco's stock was recently trading down 0.25% at $47.38 a share, while shares in CNH were up 1.75% at $45.95.
bron:
NasdaqVrij vertaald staat er dat een hoge baas van de AGCO niet van plan is om CNH over te nemen, de geruchten zijn ontstaan omdat er werd gevraagd, of er interesse zijn is CNH over te nemen.
CNH heeft aangegeven dat zij niet te koop zijn.
