Komatsu Ltd. /zigman2/quotes/204002437/delayed JP:6301 +0.41% has agreed to buy U.S. mining-equipment maker Joy Global Inc. in a $2.89 billion deal. The Japanese construction machinery maker said it's paying $28.30 per share for Joy Global, an 18% premium over the company's closing price of $23.55 on Wednesday. Including debt, the transaction is valued at about $3.7 billion. Komatsu plans to finance the takeover through funds on hand and bank loans and sees no need to increase capital at this stage. "The acquisition is in line with the growth strategy of the plan which calls for the company to strengthen the core mining equipment business in an effort to achieve sustainable growth," Komatsu said in a statement Thursday. The deal is expected to close in mid-2017. Ted Doheny, Chief Executive Officer at Joy Global, called the deal "compelling" and said it "delivers substantial and certain value to our stockholders". Shares of Joy Global were unchanged premarket, while Komatsu rose 2.3% in Tokyo.
Read the full story:
Joy Global to be bought by Japan’s Komatsu in $2.9 billion cash deal