Caterpillar To Buy Mining-Equipment Company Bucyrus For $7.6B

Caterpillar Inc. (CAT) said it will buy mining giant Bucyrus International Inc. (BUCY) for about $7.6 billion as the heavy-equipment giant looks to bolster its mining-equipment production.

The deal comes as Caterpillar's fortunes have improved mightily the past year as construction and mining companies replenish equipment after cutting back in 2009.

Under the agreement, Caterpillar will pay $92 for each Bucyrus shares--a 32% premium to Friday's closing price and an all-time high for the stock. Including debt, the deal's value is $8.6 billion.

Caterpillar shares fell 1.4% to $79.92 in premarket action on the news after rising 42% this year through Friday. Joy Global Inc. (JOYG), which was eclipsed by Bucyrus as the world's biggest mining-equipment maker following a recent acquisition by Bucyrus, rose 9.8% to $79.48.

Read Full Article from Wall Street Journal

- Posted: 2010-11-15 09:17:28

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