Caterpillar, Bucyrus, mining equipment--Cat acquires Bucyrus for $8.6 billion

Caterpillar Inc. has agreed to acquire Bucyrus International Inc. for $8.6 billion, including net debt.

The acquisition is part of Cat’s “key strategic imperative to expand its leadership in the mining equipment industry.”

Caterpillar says the acquisition will also help it “capitalize on the robust long-term outlook for commodities” that’s being driven by rapid growth in emerging markets that are improving infrastructure, rapidly developing urban areas and industrializing their economies.

The transaction is expected to close in mid-2011. Caterpillar intends to locate its mining business headquarters in South Milwaukee, Wisconsin, where Bucyrus headquarters is currently located, and maintain the Bucyrus brand for the principal Bucyrus legacy products. (by Tina Barbaccia)

Source: Equipment World