Hitachi to sell stake in Hitachi Construction
Hitachi is selling half of its 51 percent stake in Hitachi Construction Machinery to trading firm Itochu Corp and investment fund Japan Industrial Partners. The sale should not come as a surprise though. Hitachi Ltd. hinted at divesting all or part of its interests in the construction unit in March 2019 and again in October 2020.
Hitachi will sell the stake for $1.7 billion, marking the final transaction in a decade-long realignment of its business portfolio. The construction unit鈥檚 market value at the end of share trading in Tokyo was 753 billion yen. Hitachi Construction Machinery reported $7.1 billion in revenue for the 2021 fiscal year from the sales of its equipment and parts.
This shareholder announcement is part of HCM鈥檚 long-range plans to support HCM growth in North America and Latin America. It will not affect HCM鈥檚 working relationship with Hitachi Limited. But, by adding a solid financial partner in the capital-intensive equipment industry, HCM will have greater independence to chart its own future, including supporting our growth initiatives in the US.
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