A huge deal involving a Wisconsin manufacturer. Caterpillar, the world’s largest construction and mining equipment maker, has agreed to buy Bucyrus International for $7.6 billion. The deal, already approved by the boards of both companies, will create a global supplier of mining equipment, trucks and hydraulic shovels. Peoria-based Caterpillar will also assume $1 billion of Bucyrus debt. Caterpillar intends to locate its mining business headquarters in South Milwaukee, where Bucyrus headquarters is currently located, and maintain the Bucyrus brand.
Shares of Bucyrus rose thirty percent on news of the deal, which still needs approval by regulators and Bucyrus shareholders. Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel electric locomotives. Bucyrus’ surface mining equipment is used for mining coal, copper, iron ore, oil sands and other minerals. Bucyrus underground mining equipment is used primarily for mining coal.