Caterpillar Wins European Union Approval to Acquire Bucyrus
Stock Chart for Caterpillar Inc (CAT)
Caterpillar Inc. (CAT), the world’s largest maker of construction equipment, won approval from European Union antitrust regulators to buy Bucyrus International Inc. (BUCY) in a transaction valued at $8.6 billion including debt.
The deal, which adds shovels and drills to Caterpillar’s range of mining machinery, won’t hurt competition in the 27- nation EU, the European Commission said in an e-mailed statement today.
“Whilst the transaction will result in high combined market shares worldwide, the increase in market share accounted for by Bucyrus is relatively low,” the commission said.
Caterpillar is betting on higher mining-equipment sales with its acquisition of Bucyrus as Asian demand drives up commodity prices. The company has said it plans about $3 billion in capital spending this year, with more than half of that in the U.S.
Bucyrus would be Caterpillar’s biggest acquisition since at least 1980, according to data compiled by Bloomberg, followed by the company’s purchase of Perkins Ltd. in 1997 for $1.3 billion.
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