Joy Global (JOY) Stock Advancing on Komatsu Deal
NEW YORK (TheStreet) -- Shares of Joy Global (JOY) are rising 18.3% to $27.86 this morning after the company agreed to a takeover deal from Komatsu (KMTUY), MarketWatch reports.
Joy Global, based in Milwaukee, is a manufacturer of mining equipment. Komatsu is a Japanese industrial services provider.
Komatsu will pay $2.89 billion for Joy Global, or $28.30 per share.
The deal will be funded by hand and bank loans. Komatsu said it has no need to increase capital at this stage.
Joy Global CEO Edward Doheny said in a company statement that Komatsu's offer is "compelling" and "delivers substantial and certain value to our stockholders." The deal is expected to close in mid-2017.
Komatsu stock is up 1.09% to $19.48 this morning.
Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: JOY
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.