Hitachi Construction Machinery Co., Ltd. (TSE:6305) entered into an agreement to acquire remaining 15% stake in Niigata Material Co., Ltd from Mitsubishi Steel Mfg. Co., Ltd. (TSE:5632) for approximately ¥110 million in stock on October 27, 2015. Under the terms, for each share issued by Niigata-Material, 1.9 shares of Hitachi Construction Machinery will be issued.

Hitachi Construction will issue a total of 0.06 million shares as consideration. Niigata Material Co., Ltd reported total assets of ¥2 billion, net assets of ¥664 million, sales of ¥2.89 billion, operating loss of ¥2 million and net income of ¥5 million for the year 2014. The transaction is subject to approval from the shareholders of Niigata Material Co., Ltd. The transaction was resolved by the Board of Directors of Hitachi Construction Machinery Co., Ltd. The transaction is expected to complete on January 1, 2016.

Ernst & Young Transaction Advisory Services Co. Ltd. acted as a third-party appraiser for Hitachi Construction Machinery Co., Ltd.