TOKYO: Komatsu Ltd, the world’s second-biggest mining and construction equipment maker, has agreed to buy Joy Global Inc for US$2.89bil, in a deal signalling the Japanese company is optimistic that a recent rebound in commodities prices will endure.
Tokyo-based Komatsu would pay US$28.30 a share in cash for the Milwaukee-based company, using funds on hand and loans, it said in a statement. The offer is 20% higher than Joy Global’s closing price on July 20 and marks the Japanese company’s biggest-ever acquisition as it bolsters its ability to compete with bigger rival Caterpillar Inc.