Japan's Hitachi to sell about 50% stake in construction unit for $1.6 bln (updated)

Hitachi Construction Machinery

14/01/2022 06:44

(Updates with details and background)
    TOKYO, Jan 14 (Reuters) - Japan's Hitachi Ltd  6501.T  said
on Friday it plans to sell about half of its stake in Hitachi
Construction  6305.T  to trading company Itochu  8001.T  in a
sale worth about 182.4 billion yen ($1.60 billion).
    Itochu will buy Hitachi's stake for 3,300 yen a share with
Japan Industrial Partners. Hitachi currently owns a 51.5% stake
in the construction company.
    The sale would represent a final tranche of Hitachi's
decade-long business portfolio overhaul, in which it sold
chip-making equipment manufacturer Hitachi Kokusai Electric and
chemicals maker Hitachi Chemical in recent years.
    Hitachi Construction, the smaller rival of Komatsu Ltd
 6301.T  and Caterpillar Inc  CAT.N , generated 813 billion yen
in its last full business year from sales of excavators, wheel
loaders, dump trucks and their parts.
    It employs about 25,000 people worldwide with around
three-quarters of sales outside Japan.
     
    ($1 = 113.7100 yen)

 (Reporting by Sakura Murakami; Editing by Sherry
Jacob-Phillips)
 ((Sakura.Murakami@thomsonreuters.com;))