Bucyrus mining becoming purchased by Caterpillar

Caterpillar equipment is going to be expanding their offerings. Bucyrus mining equipment is going to be purchased. Caterpillar already has manufacturing companies that build diesel engines to big machines. The purchase of Bucyrus will help Caterpillar expand into the mining equipment industry.

Details concerning Bucyrus

Far from a household name, Bucyrus is a mining-equipment manufacturer. Based in South Milwaukee, Wis., Bucyrus employs just less than 7,000 people and did concerning $2.65 billion worth of business in 2009. It manufactures equipment to be used in both surface and underground mining for coal, gold, copper and other high-value minerals worldwide. Everything including the Panama canal has used Bucyrus equipment for digging.

What Caterpillar would like to pay for Bucyrus

Bucyrus has been interested in expansion. Within the last few years, that's what it has worked on. DBT GmbH and Terex Mining both made deals with Bucyrus in 2007 and 2010. The public owns Bucyrus. Caterpillar will give stockholders $92 a share. This is more than what Bucyrus stocks were trading for when the purchase was made by 30 percent. It could be financed with debt, equity and cash through a corporate no fax payday loans no credit checkfor the $7.6 billion offer. 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 offer indicates

Caterpillar will 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 company of Bucyrus is sales of their goods, two-thirds includes after-market parts and services. In short, Caterpillar can be expanding into a major growth industry. The gear for the mining websites and pulling minerals out of the ground can be everything that Caterpillar sells which help the business considerably.

Articles cited

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/