Komatsu buying Joy Global in estimated $3.7B deal
Japan’s Komatsu is buying mining equipment maker Joy Global for an estimated $3.7 billion.
Komatsu makes construction, mining, industrial and military equipment.
Joy Global Inc. stockholders will receive $28.30 per share in cash, a 21 percent premium to the Milwaukee company’s Wednesday closing price of $23.30. Its stock surged more than 17 percent in premarket trading on Thursday.
Joy’s underground mining division is headquartered in Warrendale, and its Meadow Lands sales and service facility at 2101 W. Pike St., Houston, performs machine assembly and rebuilds for customers.
Komatsu Ltd. said it plans to keep Joy Global as a separate subsidiary.
The transaction is targeted to close by the middle of next year. It still needs approval from Joy Global stockholders.