ITOCHU Secures Major Stake in Hitachi Construction Machinery
ITOCHU Corporation has solidified its position as a key player in the construction machinery sector by increasing its stake in Hitachi Construction Machinery (HCM) to 33.4%. This strategic move, finalized in February, makes ITOCHU the largest shareholder in HCM, granting it significant control over the company’s future direction. The shift signals a transformative phase for HCM, which will soon rebrand as LANDCROS Corporation, emphasizing a focus on autonomous and data-driven mining solutions.
Strategic Acquisition Details
ITOCHU’s acquisition of a 33.4% stake in HCM is a well-calculated maneuver that involves two main components. The first is the buyout of Japan Industrial Partners (JIP) from their joint venture, HCJI Holdings, which currently holds a 26% stake in HCM. By purchasing JIP’s 50% interest in HCJI, ITOCHU secures the largest single block of shares in HCM. Additionally, ITOCHU’s subsidiary, Citrus Investment G.K., acquired an extra 0.4% of HCM shares through open-market transactions in early February 2026.
This 33.4% stake is significant under Japanese corporate law, as it provides ITOCHU with a “blocking minority.” This status allows ITOCHU to veto special resolutions at shareholder meetings, including mergers and board member elections. With this level of control, ITOCHU transitions from a partner to a gatekeeper, shaping the strategic direction of HCM.
As a result of this acquisition, the shareholder landscape will shift considerably. ITOCHU’s direct and indirect stake will rise from approximately 20.4% to 33.4%, while HCJI Holdings will maintain its 26% stake, albeit under ITOCHU’s control. The public and other shareholders will see their combined stake decrease from 53.6% to 40.6%.
Rebranding and Future Directions
In a bold move, HCM plans to rebrand itself as LANDCROS Corporation in April 2027, marking a significant departure from the “Hitachi” name. This rebranding is not merely cosmetic; it reflects a strategic shift toward a “solution provider” model that emphasizes uptime, automation, and carbon neutrality, rather than just traditional machinery. The decision to shed the Hitachi name is a calculated risk in an industry where brand loyalty is often deeply entrenched.
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ITOCHU has committed to supporting this transition, indicating that the machines sold today will be serviced by a very different organization in the future. This shift aligns with broader trends in the mining industry, where the demand for advanced, data-driven solutions is growing. As the industry moves toward electrification and sustainable practices, ITOCHU’s investment positions it to capitalize on these changes.
Furthermore, the exit of JIP from the joint venture signifies the end of a restructuring phase for HCM. With JIP’s departure, ITOCHU can now pursue its strategic vision without the complexities of private equity involvement. This transition is expected to lead to a more streamlined operation focused on growth and innovation.
As ITOCHU navigates regulatory approvals for this acquisition, the market anticipates a gradual transformation. Key dates to watch include the expected completion of the share transfer in April 2026 and the official name change to LANDCROS Corporation in April 2027. This strategic consolidation marks a significant shift in the heavy machinery landscape, reflecting the evolving dynamics of the mining industry.
