Hitachi Completes Full Exit from Hitachi Construction Machinery in ~¥100bn Block Trade

Hitachi, Ltd. has sold its entire remaining stake in Hitachi Construction Machinery (HCM) — 21,462,310 shares, or 10.1% of voting rights — ending the parent company's last equity link to the excavator and mining truck maker. The block sale is worth roughly ¥100 billion (about US$740 million).

Hitachi notified HCM on Aug. 18 that it planned to divest all remaining shares, according to regulatory filings. The block was placed on Aug. 19 through SMBC Nikko Securities to domestic and overseas institutional investors, with settlement due Aug. 21. Deal terms reported by Bloomberg ahead of the sale put the offering at ¥5,062–5,171 per share — a 5–7% discount to the previous close.

HCM immediately moved to cushion the overhang, approving a buyback of up to 6,420,000 of its own shares, capped at ¥34 billion, running from Aug. 19 through Nov. 30. The repurchases, equal to roughly 30% of the block Hitachi sold, will be executed through discretionary-mandate market purchases on the Tokyo Stock Exchange to ease short-term supply-and-demand pressure while strengthening shareholder returns and capital efficiency, the company said.

HCM shares fell as much as 8.7% intraday in Tokyo before closing down 4.1%, while Hitachi slipped 0.4%.

With the transaction, Hitachi's holding in HCM has fallen to zero, closing out a sell-down that began in January 2022, when it sold half of its 51% stake to Itochu Corp. and Japan Industrial Partners. A November 2025 block trade cut its stake from 25.4% to 18.4%, and the expiry of a 180-day lock-up last week cleared the way for the final disposal.

Both companies said they will keep cooperating on digital technology, autonomous driving, electrification and parts supply, and HCM said the ownership change will have no effect on its earnings. HCM continues its push toward fully independent management ahead of its rebrand as LANDCROS, effective April 2027.

Hitachi Completes Full Exit from Hitachi Construction Machinery in ~¥100bn Block Trade

Sources