CNH Expands South African Agricultural/Construction Equipment Market

agriculture and construction equipment

CNH Industrial intends to expand its direct presence in southern Africa’s agriculture and construction equipment sectors by acquiring four divisions from CEG, a business unit of Humulani Marketing, an Invicta Holdings Limited company.

The agreement is subject to clearance from South Africa’s Competition Commission. Once approved, this transaction will mark an evolution for CNH Industrial in the Republic of South Africa as well as the wider southern Africa area.

By taking full operational management of its commercial distribution and aftermarket network, CNH Industrial aims to further develop its Case IH and CASE Construction Equipment brands’ presence together with aftermarket sales and services in South Africa and other southern African markets. This model is already in place for the company’s agriculture equipment brand, New Holland Agriculture, as well as its commercial and specialty vehicles business via its IVECO, IVECO ASTRA and IVECO BUS brands.

The business divisions included in the planned acquisition are:

  • Northmec, which is an agricultural equipment distributor and the sole distributor of Case IH equipment and implements in South Africa
  • CSE, which is an equipment distributor and the sole distributor of CASE tractor loader backhoes and skid steer loaders
  • NHSA, which is a a spare parts distributor in southern Africa mainly focused on agriculture
  • Landboupart, which is 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, during which CEG will remain in control of operations.