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New Holland secures 75.1 per cent of O&K
00:00 02 Dec 1998
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by Fiona Kingston
After months of speculation construction company New Holland has confirmed that it has signed an agreement for 75.1 per cent of the outstanding shares in O&K.
The stake in the German manufacturer of hydraulic excavators, wheeled loaders and graders has been bought from Fried Krupp AG Hoesch-Krupp. The remaining 24.9 per cent of the outstanding shares are in public hands.
This month's deal which comes on the back of a recent OEM arrangement with French telescopic handler manufacturer Manitou for the manufacture of New Holland telescopics brings the company closer to other manufacturers' aims of becoming a 'one-stop shop' for all plant purchases.
Although the cost of the deal has not been disclosed New Holland's UK spokesman Paul Hoptroff told CJ:" It gives New Holland the rights to the O&K name; products; production facilities and distribution network."
Explaining its global attraction Umberto Quadrino, New Holland's chief executive officer added: "The O&K production line will significantly enhance our presence in North and South America. This will complement Fiat-Hitachi's success across the markets of Europe, Africa and the Middle East, where we continue to invest in the complete renewal of the Fiat-Hitachi product line in conjunction with out partner, Hitachi Construction Machinery."
In Europe O&K will maintain its own distribution network and will continue to market its product line under the O&K brand name. New Holland's immediate action at O&K will be a rapid expansion of its research and development activity.
As well as revealing that New Holland's long term plans include exploring synergies between its O&K, Fiat-Hitachi and New Holland Light Equipment dealer networks to maximise sales Hoptroff revealed that the company's hunt for additional product line continues. As the dust settles on the O&K deal, he confirmed: "we are looking at mini excavators".
O&K employs about 2,000 people across Europe and is expected to generate sales of approximately DM800 million in 1998.
After months of speculation construction company New Holland has confirmed that it has signed an agreement for 75.1 per cent of the outstanding shares in O&K.
The stake in the German manufacturer of hydraulic excavators, wheeled loaders and graders has been bought from Fried Krupp AG Hoesch-Krupp. The remaining 24.9 per cent of the outstanding shares are in public hands.
This month's deal which comes on the back of a recent OEM arrangement with French telescopic handler manufacturer Manitou for the manufacture of New Holland telescopics brings the company closer to other manufacturers' aims of becoming a 'one-stop shop' for all plant purchases.
Although the cost of the deal has not been disclosed New Holland's UK spokesman Paul Hoptroff told CJ:" It gives New Holland the rights to the O&K name; products; production facilities and distribution network."
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Explaining its global attraction Umberto Quadrino, New Holland's chief executive officer added: "The O&K production line will significantly enhance our presence in North and South America. This will complement Fiat-Hitachi's success across the markets of Europe, Africa and the Middle East, where we continue to invest in the complete renewal of the Fiat-Hitachi product line in conjunction with out partner, Hitachi Construction Machinery."
In Europe O&K will maintain its own distribution network and will continue to market its product line under the O&K brand name. New Holland's immediate action at O&K will be a rapid expansion of its research and development activity.
As well as revealing that New Holland's long term plans include exploring synergies between its O&K, Fiat-Hitachi and New Holland Light Equipment dealer networks to maximise sales Hoptroff revealed that the company's hunt for additional product line continues. As the dust settles on the O&K deal, he confirmed: "we are looking at mini excavators".
O&K employs about 2,000 people across Europe and is expected to generate sales of approximately DM800 million in 1998.
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