TOKYO -- Japan's Hitachi has decided to sell about half its 51% stake in Hitachi Construction Machinery for 200 billion yen ($1.7 billion) to trading house Itochu and investment fund Japan Industrial Partners, Nikkei has learned.
The sale will represent a final tranche of Hitachi's decadelong business portfolio overhaul.
Hitachi purchased U.S. software developer GlobalLogic in July 2021 for about 1 trillion yen, as part of a business reshuffle to concentrate on the information technology sector. In April last year, the company decided to sell its metals unit, Hitachi Metals, to U.S. investment fund Bain Capital.
Among Hitachi Construction Machinery's activities is the development of automated construction machinery that uses the group's Internet of Things platform, Lumada. Hitachi expects synergies from this work, and the conglomerate plans to retain shares in the spinoff. It will maintain a collaborative relationship with the construction machinery maker.
Itochu sells construction equipment in a number of markets, including Japan, the U.S. and Indonesia. The Japanese trading house has a joint venture with Hitachi Construction Machinery in Indonesia to oversee sales and offer financial services. By investing in Hitachi Construction Machinery, Itochu will try to strengthen its sales and financial support, leveraging its overseas sales network.