, Columnist
Caterpillar Outsmarted Again
The Japanese company's cheap Joy Global deal gives it an aura of M&A wisdom.
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Komatsu seems to understand the concept of "buy low" a little better than its U.S. rival Caterpillar.
The Japanese dump-truck maker on Thursday announced it's acquiring Joy Global for $28.30 a share, or more than $3.6 billion including current net debt. Komatsu isn't swooping in at the cheapest price -- Joy had fallen below $9 at the start of the year as the commodities slump eroded demand for its mining shovels and draglines. But it's still getting Joy at almost a 50 percent discount to its five-year average. And now it has the benefit of at least some stabilization in commodity prices to give it confidence in a mining turnaround.