Caterpillar 885 million U.S. dollar acquisition of coal mine electromechanical

According to foreign reports, Caterpillar Inc., the world’s largest construction and mining equipment manufacturer, has offered HK$6.89 billion (US$885 million) to acquire ERA Machinery Ltd, a Hong Kong-based ERA Machinery Ltd, to expand the Chinese market. Sales business.

Caterpillar said in a statement yesterday that the company will acquire coal mining machinery and electromechanical equipment companies at a price of HK$0.88 per share or a redemption of HK$0.75 in loan notes at HK$1.15. According to this quotation, the latter's corporate value can reach 4.49 billion to 6.89 billion Hong Kong dollars. However, this transaction has yet to be approved by the Chinese anti-monopoly authority. This offer is 33% higher than the recent closing price of the coal mining machinery.

Caterpillar will use this acquisition to control a Chinese company that designs, manufactures and sells underground coal mining equipment. The coal mining machinery also owns Zhengzhou Siwei Mechanical and Electrical Equipment Manufacturing Co., Ltd.

Caterpillar is committed to the development of its core manufacturing business, focusing on the production of mining equipment that has very strong demand in developing countries. In July this year, the group spent $8.8 billion to acquire Bucyrus International Inc., a mining equipment manufacturer.