By Atsuko Fukase
Komatsu Ltd. said Thursday it has agreed to acquire U.S. mining-equipment manufacturer Joy Global Inc. for about $2.9 billion, in the latest overseas acquisition by a Japanese firm seeking growth.
Komatsu /zigman2/quotes/204002437/delayed JP:6301 +0.41% , Japan’s leading construction-equipment maker, said it will pay $28.30 a share in cash for the Milwaukee-based Joy Global to make it a wholly owned unit. The deal is expected to close in mid-2017, Komatsu said.
The Tokyo-based Komatsu said it and Joy Global’s product lines “will integrate well, expanding options for customers world-wide,” and the acquisition will enable it to strengthen its “core mining-equipment business in an effort to achieve sustainable growth.”
Komatsu is the world’s second-largest manufacturer of construction and mining equipment including bulldozers, dump trucks and hydraulic excavators, after Caterpillar Inc. /zigman2/quotes/203434128/composite CAT -1.39% the U.S. More than 80% of the company’s sales are generated outside of Japan.