Fiat takes New Holland to US for $4bn flotation

New Holland, the British-based tractor manufacturer owned by Fiat of Italy, is to be floated on the US market this autumn in a deal likely to value the business at about $4bn, writes Michael Harrison.

Fiat, which formed the company in 1991 after taking over Ford's tractor business based at Basildon, Essex, plans to sell off 30-40 per cent of the company and list the shares on the New York Stock Exchange.

New Holland employs 19,000 people, of whom 2,400 are in Britain. In addition to a manufacturing site at Basildon, it has its headquarters in Brentford, west London.

There are a further 17 manufacturing plants in Europe, the US and Asia, while New Holland has a 5,600-strong worldwide dealer network. It is the biggest tractor maker in Europe and the third biggest in the US after John Deere and Case.

The share offer, being led by the US investment bank Goldman Sachs and Italy's Mediobanca, is expected to take place in November. The US Securities and Exchange Commission is expected to be notifiedin the next few days.