Caterpillar Inc. has finally quoted the deal for buying Bucyrus Inc. According to the reports, the heavy equipment manufacturer, Caterpillar, which is in an expansion mode, has declared a deal of 7.6 billion dollars for buying Bucyrus. In their statement, the officials stated that the company has decided to buy Bucyrus for expanding their business in the mining equipment sector.
The news, which might be a little surprising for many people, has brought smile on the faces of the shareholders of Bucyrus. People who have purchased the stakes of the mining equipment manufacturer will receive 92 dollars for each share of the company. Caterpillar has decided to pay an additional amount of thirty-two percent over Bucyrus’s share value, till the market closed on Friday. The official sources of the company stated that the Caterpillar has also decided to purchase the debts of Bucyrus, which amounts to somewhere around one billion dollars.
According to a spokesperson of Caterpillar Inc, this will be the biggest deal the company has made so far. He added that the change of ownerships are expected to take place somewhere in the middle of 2011. Yet, he did not confirm the actual dates. The company has high hopes from this deal and expects this acquisition will help them play a dominating role in the mining equipments sector. Company officials also stated the mining equipment business of the company is expected to be based in Wisconsin. Though the deal has good news for the share holders, Caterpillar has not yet decided their plans for the staffs of Bucyrus.
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