Hitachi Construction Machinery sells $1.6 billion worth of stock

Japanese industry giant Hitachi will sell approximately 51 percent of its construction equipment manufacturer unit Hitachi Construction Machinery to trading company Itochu for 182.5 billion yen ($1.6 billion).

Tokyo-based Hitachi announced that the company will sell its 26.1% stake in Hitachi Construction Machinery' for 3,300 yen per share. The stock closed yesterday at 2,976 yen. It was announced that 25.4 percent of the shares will be purchased by Japan Industrial Partners.

Founded in 1970, Hitachi Construction Machinery reported sales of 813.3 billion yen last fiscal year. The company employs approximately 25,000 people worldwide.

Hitachi bought US software development firm GlobalLogic for $9.6 billion last July. In April, the sale of $3.5 billion of shares in Hitachi Metals to a group led by the US investment fund Bain Capital was delayed due to regulatory authorities.