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July 21, 2016, 6:32 a.m. EDT

Joy Global to be bought by Japan’s Komatsu in $2.9 billion cash deal

Komatsu sees all-cash deal closing in mid-2017

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By Atsuko Fukase


Reuters
Komatsu is scooping up equipment maker Joy Global for nearly $3 billion.

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.

An expanded version of this report appears at WSJ.com .

/zigman2/quotes/204002437/delayed
JP : Japan: Tokyo
¥ 2,189.00
+9.00 +0.41%
Volume: 3.24M
July 9, 2020 3:00p
P/E Ratio
13.45
Dividend Yield
4.29%
Market Cap
¥2059.28 billion
Rev. per Employee
¥45.51M
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/zigman2/quotes/203434128/composite
US : U.S.: NYSE
$ 126.36
-1.77 -1.39%
Volume: 431,636
July 9, 2020 10:44a
P/E Ratio
13.44
Dividend Yield
3.25%
Market Cap
$69.35 billion
Rev. per Employee
$526,173
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