Caterpillar Finalizes Bucyrus Acquisition

After Caterpillar completed its $8.8 billion acquisition of Bucyrus on Friday it announced the start of a new mining equipment division in Milwaukee. The acquisition deal was announced last December. The president of the new division Steve Wunning said that there were great times ahead for the newly merged company.

Steve Wunning said that Caterpillar acquiring the Bucyrus facilities in South Milwaukee and Oak Creek would actually be good for business as they would create jobs and not cut them. There was considerable fear of layoffs when the 130 year old Bucyrus company was made the target of Caterpillar’s take over bid.

The funding for the takeover was not based on equity issue but on a combination of cash from the balance sheet and debt. The $4.5 billion new debt was posted by the company on May 24, 2011.

Bucyrus was a world leader in the design and manufacture of high productivity mining equipment for surface and underground mining with reputed products and brands. The deal will allow Caterpillar to rake in profits on the rising demand for coal and minerals in developing nations. Caterpillar is already the largest maker of construction equipment in the world. After it has acquired Bucyrus it will offer the broadest product line available in the industry.

Joel Scanlon

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Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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