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Senior Contributor

AGCO to buy Case/ New Holland?

It's being reported this morning, that AGCO is looking at buying out Case/New Holland. Anybody surprised at this? I guess if Barnes & Noble and Borders, the two bookstore giants, can swallow each other, why not a few agricultural equipment makers?

 

What say you? Is this potential consolidation effort good for ag?

 

For full story, click here

 

Mike

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14 Replies
Senior Contributor

Re: AGCO to buy Case/ New Holland

No, but I would rather see Deere buy Gleaner from AGCO, and offer a low cost smaller transverse mounted rotary combine after cleaning up some of the design weaknesses.

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Veteran Advisor

Re: AGCO to buy Case/ New Holland

This move may discourage some from purchasing Case equipment.

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Frequent Contributor

Re: AGCO to buy Case/ New Holland

Maybe....... But an MX275 in corporate orange would be way cool! Smiley Wink

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Advisor

Re: AGCO to buy Case/ New Holland?

Agco dealers are still getting used to no more White and Agco tractors.  Look at the modernization of most Deere dealerships.  Many Agco dealers are like going back to the 50s.  Look at Deere resale values.  People know Deere is there to stay although they may have to drive a ways to a competing franchise.  I don't see how it can be helpful to the Case IH brand.  This could be another reason Deere stock has been on an upward move lately.  On a personal note.  I went to see the local Deere salesman recently.  He was on a sales call and there were 3 farmers waiting to see him. 

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Senior Contributor

Re: AGCO to buy Case/ New Holland?

Some analysts say CNH would be too big a mouthful for AGCO to digest.
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Advisor

Re: AGCO to buy Case/ New Holland?

   That too Jim.   Market capitalization of CNH is many times AGCO.

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Highlighted
Contributor

Re: AGCO to buy Case/ New Holland?

At least Caseih would be american owned again.

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Contributor

Re: AGCO to buy Case/ New Holland?

Maybe they should buy Deere also, then they would have it all.  Antitrust anyone?

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bgtbran
Friend

Re: AGCO to buy Case/ New Holland

Not going to happen right now.  Lots of little tid bits of irony here.  Case's top man was previously fired from Agco.  Lots of Agco engineers came from CNH.  Fiat owns almost 90% of CNH and right NOW they have positive cash input into Fiat thus it is not for sale at a bargain.  Fiat is so big a part of Italy's  economy it is too big to fail.   Fiat's purchase of Chrysler yerns for cash thus this potential merger or purchase. If the auto industry stubs its toe - and the third of the big three has flat feet, then the need for cash might get more intense.   Fiat has a poor track record selling anything in N. America when they take over the reins.  Fiat once owned Hesston which nearly went extinct til Agco bought it.  Agco would like the dealer organization in N. America  and  CNH would benefit from the world wide MF organization or the merger of the two.  Other rumors have NH spun off and leaving the hay line separate and only the harvesting, implement and tractor division left as Case.  Years ago the SEC would have nixed the deals - today if it meant a positive business atmosphere beneficial to the US it will fly.  Agriculture is on a high right now, if N. America S. America and Russia has an above average crop and the congess drops ethanol subs, then the graph will point down and talks of all kinds will result.  So in a winter lull if one does not like the rumors flying, start a good one you do like.  Beats watching TV and overhauling the equipment.  

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