Joy Global (JOY) To Be Acquired By Komatsu In A $2.9B Deal
Zacks Investment Research | Jul 20, 2016 09:59PM ET
Joy Global (NYSE:JOY) will be acquired by Japanese mining and construction equipment maker and seller Komatsu Ltd. (OTC:KMTUY) for nearly $2.9 billion. A definitive agreement for the acquisition was signed by the representatives of both the companies. The acquisition is expected to close in mid-2017, subject to approval by Joy Global’s shareholders and regulators of both countries.
Deal in Detail
Komatsu is on the lookout to expand operations globally and Joy Global with its footprint in more than 20 countries is just the right fit .
Komatsu will acquire a 100% share of Joy Global at a price of $ 28.30 per share with the total consideration coming to nearly $2.9 billion. The price offered for each share of Joy Global reflects a premium of 20.2% on yesterday’s closing price of $23.55.
Post acquisition, Joy Global will act as a consolidated subsidiary of Komatsu. Komatsu will fund this all-cash deal through its cash on hand and bank loans. The company does not plan to increase capital at this stage.
JOY GLOBAL INC Price/h3
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.