Caterpillar Gets China OK For Bucyrus Acquisition
PEORIA, Ill. (AP) â¿¿ Caterpillar has completed its acquisition of Bucyrus (byoo-SY'-rus) International to expand its line of mining equipment.
Caterpillar Inc. said it completed the deal Friday after getting regulatory approval from China. The U.S. Justice Department already approved it.
Caterpillar paid $92 per share, or about $7.6 billion, to acquire Bucyrus International Inc. The deal is worth $8.8 billion including net debt.
Bucyrus makes surface mining equipment used for coal, copper, iron ore, oil sands and other minerals. It is based in South Milwaukee, Wis.Caterpillar, based in Peoria, Ill., is the world's largest maker of construction and mining equipment. The Bucyrus brand will be replaced by the Caterpillar brand. Caterpillar's Steve Wunning, who oversees mining equipment, says the company expects demand to remain strong for mining equipment because of growth in the developing world. Caterpillar shares fell $1.85, or 1.7 percent, to $109.78 in afternoon trading.
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