Itochu to increase stake in Hitachi Construction Machinery

Japan’s Itochu Corp is to increase from 20.4% to 33.4% its shareholding in Hitachi Construction Machinery (HCM) with the aim of deepening its partnership and accelerating the development of the business in key markets, including North America.

Itochu, which first invested in HCM in 2022, said it will accelerate its collaboration with Hitachi, especially in North America, by jointly promoting sales, rental, and finance businesses and by pursuing mergers and acquisitions and new business areas.

The announcement on 19 February comes as Hitachi Construction Machinery plans to change its name to Landcross Corp in April 2027.

A battery powered Hitachi ZE 135 excavator in action. (Photo: Hitachi)

Itochu said; “With this additional share acquisition, Itochu will be more proactive in supporting HCM’s brand transformation and medium-to-long-term growth strategies and will be even more strongly committed from a capital perspective.”

It added; “In HCM’s key markets, notably North America, Itochu will accelerate collaboration by jointly promoting sales, rental, and finance businesses and by pursuing M&A opportunities and new business areas.

“Itochu will also leverage the Itochu Group’s expertise in areas such as business management, governance, logistics, finance and ESG to help strengthen HCM’s management foundations and increase its global competitiveness.”

In response to Itochu’s announcement, HCM said it understood that Itochu had no plans to further increase its shareholding in HCM, and added; “Itochu has consistently supported HCM’s efforts to achieve further growth and advancement in HCM’s business, while also providing medium- to long-term support as a shareholder.

“HCM will continue to deepen collaboration in various aspects of the business as an important partner.”

The transaction is expected to be given regulatory clearance between February and April 2026, said Itochu.