Caterpillar agrees to buy Bucyrus for $7.6 billion

[November 15, 2010]  NEW YORK (AP) -- Caterpillar Inc., the world's largest construction and mining equipment maker, says it has agreed to buy Bucyrus International Inc. for $7.6 billion in cash.

The purchase price works out to $92 per share, a 32 percent premium to Bucyrus' closing price on Friday. The deal, which is valued at $8.6 billion including debt, is expected to close in mid-2011.

Bucyrus is based in South Milwaukee, Wis. It makes surface mining equipment used for mining coal, copper, iron ore, oil sands and other minerals.

The deal requires approval by regulators and Bucyrus shareholders.

Caterpillar of Peoria, Ill., said Monday it's buying the company to expand its mining business and take advantage of rapid growth in emerging markets.

[Associated Press]

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