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Caterpillar acquisition of Bucyrus receives DOJ approval

Caterpillar launches new MineStar System

Caterpillar’s purchase of Bucyrus looks set to go ahead, with both companies having received notification from the United States Department of Justice (DOJ) that it has closed its investigation into the planned acquisition.
The approval, received on 20 May, concludes the antitrust review process in the United States. With the expiration of the Hart- Scott-Rodino Act waiting period, the acquisition will be able to proceed.

Valued at approximately $8.6bn (including net debt), the acquisition is now expected to complete mid-2011, once all other conditions to closing have been satisfied.

“We were very pleased to hear this positive news from the Department of Justice about this strategic acquisition,” said Caterpillar Chairman and CEO Doug Oberhelman.

“Since we announced our plan to acquire Bucyrus last November, we have continued to hear from our customers that this complementary expansion of our mining product range is what they have been looking for from Caterpillar. This will position us to better serve the increasingly complex requirements of those customers.”

Tim Sullivan, Bucyrus President and CEO, said, “This is a critical and important step as we move toward closing this historic transaction that will deliver tremendous value to all the Bucyrus stakeholders.”

Caterpillar will fund the acquisition through a combination of cash from its balance sheet and debt and does not plan to issue equity to help pay for the acquisition.

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