Hitachi to divest some of its Hitachi Construction shares

TOKYO -- Hitachi will sell a part of its stake in subsidiary Hitachi Construction Machinery, Nikkei learned on Friday, as the Japanese manufacturing icon nears the end of a decadelong restructuring effort.The move is part of Hitachi's recent strategy to sell listed subsidiaries that have little synergy with information technology, a key growth driver for the company.

Hitachi Construction Machinery is listed on the first section of the Tokyo Stock Exchange. Hitachi owns around 51% and is considering a sale of half of this stake. Hitachi Construction Machinery develops automatic driving systems for machinery used on large construction jobs. The machinery is equipped with Lumada, Hitachi's proprietary Internet of Things platform.

Though Hitachi Construction Machinery no longer will be a subsidiary of Hitachi, it will continue to leverage Hitachi's brand on its global expansion drive.

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