U.S. heavy equipment giant Caterpillar said on Nov. 15 it will acquire mining company Bucyrus International for some $7.6 billion.
The transaction, valued at some $8.6 billion plus about one billion in debt, "is based on Caterpillar's key strategic imperative to expand its leadership in the mining equipment industry," the company said.
Under the terms of a deal approved by the boards of the two companies, "Bucyrus shareholders will receive $92 per share, $7.6 billion in aggregate consisting of all cash," Caterpillar said.
Bucyrus, headquartered in South Milwaukee in Wisconsin, is a global leader in the manufacture of mining equipment that is used in both surface and underground mining of coal, copper, iron ore and other minerals.
Peoria, Illinois-based Caterpillar cited its intent to "capitalize on the robust long-term outlook for commodities" as rationale for the purchase.
Caterpillar chairman and chief executive Doug Oberhelman said the Bucyrus acquisition is "a strong statement about our belief in the bright future of the mining industry."
Copyright Agence France-Presse, 2010