Fiat, Iveco, truck, engine, CNH--New Fiat Groups Debut

The long anticipated “demerger” of Fiat has commenced, as Fiat Industrial and Fiat SpA have debuted on the Milan, Italy, Stock Exchange.

The move, which was approved in mid-2010, consisted of the Italian company splitting off its industrial holdings, including the Iveco trucks and engine business and farm equipment manufacturer CNH Global, with the aim of unlocking their value through a separate listing and freeing up growth at the automotive group.

The start of Fiat Industrial has been positive according to financial analysts, but a complete analysis of the financial operation will be given in a few days. Only Credit Suisse has already released a full report, which identifies Fiat Industrial as the best asset between the two new companies.

Analysts had forecast an opening share price of €6.60 to €7.60 for Fiat Spa (the automotive company) and between €9.2 and €9.4 for Fiat Industrial. The two companies closed their first days (Jan. 3) at €7.02 and €9.00, respectively.

Source: Diesel Progress Online