Caterpillar has acquired ERA Mining Machinery, a Chinese manufacturer of underground coal mining equipment for $886 million, the company said. The deal is subject to approval by ERA shareholders and Chinese regulators. The acquisition would be Caterpillar’s first in the mining sector in China.
“Our announcement underscores Caterpillar’s long-term commitment to continue to invest in China in order to support our growing base of Chinese’s customers,” said Steve Wunning, Caterpillar group president, resource industries.
Caterpillar Inc. and ERA Mining Machinery recently announced a pre-conditional voluntary offer by Caterpillar, through a wholly owned subsidiary, for all of the issued shares of ERA.
ERA designs, manufactures, sells and supports underground coal mining equipment in mainland China through its wholly owned subsidiary Zhengzhou Siwei Mechanical & Electrical Equipment Manufacturing Co., commonly known as Siwei.