RERMAG

Caterpillar Cleared to Close Bucyrus Acquisition

Caterpillar Inc. and Bucyrus International last week received notification from the United States Department of Justice that it has closed its investigation into Caterpillar’s planned acquisition of Bucyrus. The DOJ action, in addition to the expiration of the Hart- Scott-Rodino Act waiting period, concludes the antitrust review process in the United States. The clearance by the DOJ will allow the acquisition, valued at approximately $8.6 billion (including net debt), to proceed as soon as all other conditions to closing have been satisfied. The transaction is expected to close in mid-2011.

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

The acquisition is based on Caterpillar’s key strategic imperative to expand its leadership in the mining equipment industry, and positions Caterpillar to capitalize on the robust long-term outlook for commodities driven by the trend of rapid growth in emerging markets that are improving infrastructure, rapidly developing urban areas and industrializing their economies.

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

Headquartered in Peoria, Ill., Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Bucyrus, based in Oak Creek, Wis., designs and manufactures high productivity mining equipment for the surface and underground mining industries.

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