Hitachi Construction Machinery Co.’s shares fell the most in almost three weeks after its major shareholder Hitachi Ltd. offloaded all of its holding in a $740 million block trade, according to Bloomberg Markets. The move is part of the Japanese conglomerate’s ongoing effort to divest non‑core assets and concentrate on its primary businesses.

The block trade involved the sale of Hitachi Ltd.’s entire stake in Hitachi Construction Machinery, valued at approximately $740 million. This transaction reduced Hitachi Ltd.’s ownership to zero, signaling a clear shift in the parent company’s investment strategy. Market participants noted the size of the trade as one of the largest single‑day disposals of a listed subsidiary in recent months.

Following the announcement, Hitachi Construction Machinery’s stock dropped sharply, marking its biggest intraday decline since mid‑April. Trading volume surged as investors reacted to the news, with shares falling X% (exact percentage not disclosed in the source). Analysts observed that the sell‑off reflected concerns over reduced parental backing and potential changes in governance.

Hitachi Ltd. has been pursuing a broader asset‑sale program to streamline its portfolio and focus on core industrial and technology divisions. The divestment of Hitachi Construction Machinery aligns with that strategy, though the long‑term impact on the machinery unit’s operations remains to be seen.