Hitachi to sell about 50% stake in construction unit for US$1.6b
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[TOKYO] Japan's Hitachi said on Friday it plans to sell about half of its stake in Hitachi Construction to trading company Itochu in a sale worth about US$1.60 billion.
Itochu will buy Hitachi's stake for 3,300 yen (S$39) a share with Japan Industrial Partners. Hitachi currently owns a 51.5 per cent 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 and Caterpillar, 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.
REUTERS
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