Updated:
11/15/2010 10:45:00 AM
Heavy-equipment maker Caterpillar Inc. said Monday it will buy a mining equipment company in a deal valued at more than $8 billion.
Caterpillar will buy Bucyrus International for $7.6 billion to add shovels, draglines and drills to its product range, and the deal is valued at $8.6 billion including net debt, Bloomberg reported.
Bucyrus shareholders will receive $92 a share — a 32% premium to the Milwaukee-based company’s Friday share price of $69.62 per share, Bloomberg said.
The deal is the largest in the construction and mining machinery industry in the past five years, Bloomberg reported.
Caterpillar, which formerly made diesel truck engines, said in 2008 it was pulling out of the North American Class 8 truck engine market except for a truck and engine in partnership with Navistar International Corp.
© 2010, Transport Topics Publishing Group. All rights reserved.
RELATED ARTICLES
Caterpillar to Buy Mining Equipment Firm for $8 Billion (11/15/2010 10:45:00 AM)
TT 50: Shippers Seek Ways to Meet Market Demands, Deal With Capacity Constraints by Using 3PLs (11/15/2010 3:15:00 AM)
Navistar Shows Off Alabama Plant Producing Heavy-Duty Engines (11/8/2010 6:00:00 AM)
Mack Seeks to Increase Sales of Over-the-Road Class 8 Trucks (11/8/2010 5:00:00 AM)
Caterpillar’s 3Q Income Jumps 96% on Stronger Sales (10/21/2010 11:40:00 AM)
Greenbriar to Acquire Dynamex for $210 Million (10/11/2010 1:45:00 AM)
OTHER NEWS BRIEFS
