The world’s largest construction equipment manufacturer is trying to increase its presence in the mining industry. Caterpillar Inc. is now one step closer to acquiring Bucyrus International Inc., a Wisconsin-based mining equipment manufacturer, for a company record $8.6 billion.
On Tuesday, the US Department of Justice closed its antitrust investigation that had been holding up the deal. Caterpillar had to sell roughly $4.5 billion worth of bonds to help fund this purchase. The deal is expected to be finalized in the next few months.
"We were very pleased to hear this positive news from the Department of Justice about this strategic acquisition," said Caterpillar Chairman and CEO Doug Oberhelman in a statement.
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Bucyrus International Inc. specializes in the manufacturing of surface-mining equipment that is primarily used to mine coal, iron ore, oil sands, copper and other minerals.
The acquisition is part of Caterpillar's plan to increase its influence in the mining equipment industry. The acquisition of Bucyrus was first announced last November, however the purchase has been held up while it was reviewed by the US government.
"Since we announced our plan to acquire Bucyrus last November, we have continued to hear from our customers that this complementary expansion of our mining product range is what they have been looking for from Caterpillar,” said Oberhelman. “This will position us to better serve the increasingly complex requirements of those customers."
In Related News-(Dow Jones)--Caterpillar Inc.’s global construction machinery sales increased by 66 percent during the three month span from February to April of this year.