Due to “dramatically” decline in the demand for mining equipment, construction & mining giant manufacture of Japan ‘Komatsu’ have bought an American equipment maker ‘ Joy Global ‘ in $28.30 per share – Tokyo.
Komatsu Ltd. or Komatsu, which is based in Tokyo, and known to be a Japanese multinational corporation that manufactures construction, mining, and military equipment, as well as industrial equipment like press machines, lasers and thermoelectric generators etc. Whereas, Joy Global Inc. is an American company, based in Wisconsin, that manufactures and services heavy machinery used in underground and surface mining.
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The main reason behind this deal is said to be global decline in the demand of mining equipment and in the words of company “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.”
Joy Global, which is founded in 1884, with current the revenue of 4.404 billion USD in 2011, now in 2016, has been hit hard by the global mining slowdown with the loss of $1.18 billion in the fiscal year that ended in October, ended in sold to Komatsu of Japan. However, the Komatsu-Joy Global deal is expected to close in 2017.