Bucyrus mining gear being purchased by Caterpillar

In an effort to expand the company, gear manufacturer Caterpillar is going to buy Bucyrus mining equipment. You will find large machines, engines, and plenty of equipment already built by Caterpillar. With this purchase, Caterpillar can be expanding significantly. The company will now contain mining gear.

Details regarding Bucyrus

Not many know exactly what Bucyrus is. As a mining-equipment manufacturer, it isn't well known. In 2009, Bucyrus did regarding $2.65 billion in business while employing 7,000 individuals in South Milwaukee, Wis.. Underground and on the surface, it manufactures equipment for mining. It’s for mining all precious metals such as copper, coal and gold. Bucyrus equipment has been used to dig anything, up to and including the Panama Canal.

Caterpillar made Bucyrus a deal

For the last few years, Bucyrus has been trying to expand. In 2007 and 2010, Bucyrus made deals with DBT GmbH and Terex Mining. The public owns Bucyrus. Caterpillar will give stockholders $92 a share. This is more than exactly what Bucyrus stocks were trading for when the purchase was made by 30 percent. This $7.6 billion dollar offer can be financed with equity, debt and accessible money via a corporate-sized payday loan no faxing. The hope Caterpillar has is that "cheap financing" will be accessible. This will require banks to give the lowest interest rates possible.

What the Bucyrus/Caterpillar deal means

Caterpillar can be able to be part of the mining world which mines for heavy metals and rare-earth minerals with the Bucyrus and Caterpillar deal. While one-third of the business of Bucyrus is sales of their merchandise, two-thirds includes after-market parts and services. There is a major growth industry there. Caterpillar will now work in it. Caterpillar is going to be much more well rounded as a company. Every little thing from the big gear trucks to the gear that pulls minerals out of the ground could be sold by the company.

Citations

Cat.com

cat.com/products/

Bucyrus

bucyrus.com/news/article/20101115_71755.aspx

Wall Street Journal

blogs.wsj.com/deals/2010/11/15/caterpillar-deal-everything-you-wanted-to-know-about-bucyrus/