Bucyrus mining becoming bought out by Caterpillar

In an effort to expand the company, equipment manufacturer Caterpillar is going to buy Bucyrus mining equipment. Caterpillar currently manufactures every little thing from large machines to diesel engines. With this purchase, Caterpillar could be expanding substantially. The business will now consist of mining equipment.

The company of Bucyrus

Not many know exactly what Bucyrus is. As a mining-equipment manufacturer, it isn't well known. Based in South Milwaukee, Wis., Bucyrus employs just less than 7,000 individuals and did concerning $2.65 billion worth of business in 2009. It’s in charge of making all the equipment for mining coal, copper and even gold around the world underground and on the surface. Digging typically includes Bucyrus equipment in some way. Even the Panama Canal used it.

Bucyrus price according to Caterpillar

Bucyrus has been interested in expansion. In the last few years, that's what it has worked on. In 2007 and 2010, deals were made by Bucyrus. DBT GmbH and Terex Mining where those who made the deals. Bucyrus is a publicly owned company, and stockholders can be becoming $92 a share from Caterpillar. It is a good offer thinking about it’s above what Bucyrus stocks were trading for. It’s 30 percent above actually. This $7.6 billion dollar offer could be financed with equity, debt and available money via a corporate-sized payday loan no faxing. Caterpillar is relying about the “cheap financing” from low interest rates available in banks.

Exactly what the Bucyrus/Caterpillar entails

The deal between Bucyrus and Caterpillar is orchestrated in such a way that Caterpillar may be able to take advantage of the growing business of mining and the world’s heavy appetite for metals, rare-earth minerals and mined goods. After-market parts and services is where Bucyrus gets two thirds of its sales while only one 3rd comes from the first sale of the merchandise. Caterpillar is preparing on getting in a growth industry that is there. The equipment for the mining online websites and pulling minerals out of the ground can be everything that Caterpillar sells which help the company 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/