Komatsu Ltd., the second-biggest mining and construction equipment maker, agreed to buy Joy Global Inc. for $2.89 billion, signaling the Japanese company is optimistic that demand for shovels and drills will rebound after years of declining commodity prices.
Komatsu will pay $28.30 a share in cash, it said Thursday in a statement, an offer 20 percent higher than Milwaukee-based Joy’s closing price the day before. It will be Komatsu’s biggest-ever acquisition, bolstering its ability to compete with larger rival Caterpillar Inc. Joy shares jumped 17 percent to $27.65 at 11:01 a.m. in New York.
