Japanese media are reporting that Hitachi will sell about half of its 51 percent stake in Hitachi Construction Machinery (HCM) to an investment fund. Estimated price is $1.7 billion, according to Nikkei Asia.
The construction equipment will continue to carry the Hitachi brand, according to Japan Times.
Hitachi is ending its joint venture with John Deere at the end of February. Concurrent with that move is a renaming of the North American unit to Hitachi Construction Machinery Americas Inc.
"This shareholder announcement is part of HCM’s long-range plans to support HCM growth in North America and Latin America," said Al Quinn, CEO of HCMA. "It will not impact HCM’s working relationship with Hitachi Limited. But, by adding a solid financial partner in the capital-intensive equipment industry, HCM will have greater independence to chart its own future, including supporting our growth initiatives in the United States, Canada and Latin America region."
The company will also expand its North American offering beyond wheel loader to include all Hitachi Construction Machinery products, including compact and construction-sized hydraulic excavators, ultra-large mining excavators, and mining dump trucks.
