(MENAFN) Fiat Industrial SpA, the truck and tractor division of Fiat SpA (F), plans to merge with its CNH Global NV unit, Bloomberg reported.
Fiat Industrial, which owns 88 percent of the Dutch tractor maker, offered to CNH's board the creation of a new entity in a share exchange that wouldn't include a premium for either companies' investors.
If the merger deal was successfully sealed, it would create the world's third-largest capital goods company, with a product range that includes Iveco delivery trucks, New Holland harvesters and FPT ship engines, Fiat Industrial said.
Chairman Sergio Marchionne said that Fiat Industrial plans to boost sales to USD31.1 billion this year, including Amsterdam-based CNH.
Fiat, which owns 58.5 percent stake in US carmaker Chrysler, also plans to move its primary listing to New York to lure more investors worldwide.
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