Japanese mining equipment manufacturer Komatsu has acquired Joy Global for US$2.89 billion.
Mikwaukee-based Joy Global has a location in Lively, a subdivision of Sudbury. It was formerly Mining Technologies International, which Joy Global acquired in 2014 for $51 million.
In a July 21 release, Komatsu said the acquisition is part of its three-year plan for growth in its mining equipment business. It will pay $28.30 per share of Joy Global.
Komatsu is the world’s second-largest manufacturer of mining and construction equipment, following Caterpillar Inc. However, until now, its focus has been on surface mining equipment.
Joy Global manufactures and services advanced original equipment and parts for underground and surface mining applications, as well as material handling systems and components for a variety of applications, products that complement existing Komatsu products, Komatsu said in the release.
Komatsu is predicting a rise in demand for equipment following the recent mining industry downturn.
“Demand for mining equipment has declined dramatically from the peak, reflecting economic slowdown in emerging countries and low commodity prices,” the release reads.
“Over the long term, however, the mining equipment business is projected to grow, driven by population growth and rapid urbanization around the world. In terms of mining techniques, economic rationale will call for use of larger equipment in surface mining as well as further development of underground mining.”
The acquisition is expected to close by April 2017.
