Hitachi Construction Machinery says Hitachi Ltd. will no longer be a shareholder after the sale, while cooperation between the two companies will continue in selected technology and supply areas.
Hitachi Ltd. has moved to sell its remaining stake in Hitachi Construction Machinery Co., Ltd., ending its position as a shareholder of the construction and mining equipment manufacturer.
According to Hitachi Construction Machinery, Hitachi Ltd.’s voting rights in the company are expected to fall from 10.1% before the change to 0.0% after the change. The company stated that, following completion of the sale, Hitachi Ltd. will no longer be a shareholder of Hitachi Construction Machinery.
The transaction involves SMBC Nikko Securities Inc., which Hitachi Construction Machinery said would aggregate purchase orders from securities companies in connection with the sale. SMBC was expected to become a major shareholder temporarily and then promptly resell the shares to institutional investors in Japan and overseas.
The sale is part of its policy to reduce cross-shareholdings. The company said it will record a gain of ¥179.9 billion on the sales of investment securities on its unconsolidated financial statements for the fiscal year ending March 31, 2027. That figure includes the sale of Hitachi Construction Machinery shares completed on May 15, 2026 and the sale announced in August. Hitachi also said the gain will not be recognized in its consolidated statements of profit or loss under IFRS treatment and will have no impact on its consolidated financial results forecast for the fiscal year ending March 31, 2027.
The shareholder change comes ahead of Hitachi Construction Machinery’s planned corporate name change to LANDCROS Corporation from April 1, 2027. However, Hitachi Ltd. will remain an important business partner and that the companies will continue cooperation in areas including digital and autonomous operation technologies, electrification and parts supply.
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