Canadian Manufacturing

Komatsu buying Joy Global for US$3.7B

Japanese machinery maker plans to add the U.S. mining equipment specialist as a separate subsidiary


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PHOTO: Judgefloro, via Wikimedia Commons

Komatsu, which makes a range of heavy machinery will add the mining equipment specialist as a separate subsidiary. PHOTO: Judgefloro, via Wikimedia Commons

NEW YORK—Japan’s Komatsu is buying mining equipment maker Joy Global in a deal worth about US$3.7 billion.

Komatsu makes construction, mining, industrial and military equipment.

Joy Global Inc. stockholders will receive $28.30 per share in cash, a 21 per cent premium to the Milwaukee company’s Wednesday closing price of $23.30. Its stock surged more than 17 per cent in premarket trading July 21.

Komatsu Ltd. said that it plans to keep Joy Global as a separate subsidiary.

The transaction is targeted to close by the middle of next year. It still needs approval from Joy Global stockholders.


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