One for sorrow, $2.9billion for Joy: Komatsu to buy U.S rival Joy Global
The Japanese mining equipment manufacturers Komatsu Ltd has entered an agreement to purchase Joy Global Inc, as the company bids to increase its presence in the mining industry.
Taking into account the Milwaukee based company’s current debts, the deal will be worth $3.7billion in total.
The deal comes at a time when the dollar has fallen 10 percent against the yen this year, encouraging Japanese companies to conduct international deals.
Demand for mining equipment has also fallen, with Komatsu specialising in the production of surface-only mining equipment.
With the declining demand, now is a “good time” for Komatsu to enter the underground mining business.
"The mining market is near the bottom now. Now is the good time (to do the acquisition)," Komatsu Chief Executive Tetsuji Ohashi told reporters.
"We have solid enough financial soundness to withstand a large scale acquisition."
Read the July issue of Mining Global Magazine!
Be sure to follow @MiningGlobal for news and latest updates.
- Caterpillar & Komatsu combine with OEMs on e-Haul TrucksSupply Chain & Operations
- Top 10 electric mining tools (and companies that use them)Technology
- Komatsu unveils a line-up of sustainable mining machinesTechnology
- Komatsu builds hybrid mining shovel at Nevada copper mineAutomation & AI
Featured Articles
Rio Tinto completed its US$6.7bn acquisition of Arcadium Lithium, making it a key company in raw materials mining for batteries in the energy transition
Intel first began to work towards responsibly sourced conflict minerals from the Democratic Republic of Congo and adjoining countries about 12 years
International Energy Forum says mining is the 'paradox' at heart of quest for clean energy but recognises the industry is addressing sustainability issues