Cat to acquire Bucyrus
First publishedon www.AggBusiness.com
Caterpillar has announced that it has signed a deal to buy mining equipment producer Bucyrus for US$8.6billion and the company has said that the takeover is part of its strategy to expand its leadership in the mining sector. Cat has said that the acquisition will create a mining company with an unmatched product range and unrivalled customer support which will drive strong synergies.
According to Cat, the deal will position the company well to capitalise on the robust long-term outlook for commodities driven by the trend of rapid growth in emerging markets.
“For several years, mining customers have been asking us to expand our range of products and services to better serve their increasingly complex requirements,” said Cat chairman and CEO Doug Oberhelman. “This announcement says to those customers, we heard you loud and clear. It is a strong statement about our belief in the bright future of the mining industry. Our strategy calls for disciplined investment in attractive industries that value our product and service delivery model."
Completion of the deal is subject to regulatory approval but Cat believes that more than US$400million can be saved in synergies between the two companies.