Hitachi to fully acquire TCM

Hitachi has announced it will fully acquire wheeled loader and materials handling equipment manufacturer TCM by the end of the year.

Hitachi already owns 50.1% of TCM, and it says it will fully acquire TCM by means of a share swap in December. The ratio of the swap is expected to be 1 Hitachi share for every 10 TCM shares.

The deal further consolidates Hitachi's position as a wheeled loader manufacturer, following last October's announcement that it was forming a joint venture with Kawasaki to help meet the challenges of the forthcoming Tier 4/Stage IIIB engine emission requirements.

Under the terms of that agreement, Kawasaki is spinning all of its wheeled loader businesses into the joint venture. Hitachi has a call option to fully acquire the joint venture three years after it is formed.

This could see Hitachi fully acquire Kawasaki's wheeled loader business in 2012, in addition to this year's purchase of another former rival, TCM.