According to a Reuters report today, Iveco’s parent company – CNH Industrial – is considering the future of the brand.
Sources have confirmed that negotiations have taken place with China’s FAW, after talks last year were aborted. The newswire stated that new CNH Industrial CEO, Scott Wine, had confirmed that discussions had taken place, but didn’t elaborate.
“No final agreement around the scope or nature of cooperation has been reached at this time,” said a spokesman. “Further information in line with statutory and regulatory requirements will be disclosed in due course.”
This latest development comes after Chinese state-owned FAW made a €3 billion bid for Iveco last September. At the time, the valuation was considered too low by CNH and subsequently dismissed.
In response to the news, the CNH shares rose by as much as 4.5% on Wednesday morning.
The proposed move for Iveco by FAW comes as the Chinese brand looks to expand beyond its home country. An investment is likely to help FAW’s Jiefang brand gain access to the international commercial vehicle market.
The Reuters report states that FAW has made an improved takeover offer following the latest discussions. It is believed that the company wan to acquire Iveco’s entire commercial business as part of the deal.
In reality, that covers trucks, buses as well as a minority stake in the FPT engine division.
Iveco UK was approached by Trucking, but declined to make any specific comment on the news.