Komatsu buying Joy Global in deal valued at about $3.7B

Posted at 9:49 AM, Jul 21, 2016
and last updated 2016-07-21 13:23:36-04

NEW YORK (AP) -- Japan's Komatsu is buying mining equipment maker Joy Global in a deal worth about $3.7 billion.

Komatsu makes construction, mining, industrial and military equipment.

Joy Global Inc. stockholders will receive $28.30 per share in cash, a 21 percent premium to the Milwaukee company's Wednesday closing price of $23.30. Its stock surged more than 17 percent in premarket trading on Thursday.

Komatsu Ltd. said that it plans to keep Joy Global as a separate subsidiary.

The transaction is targeted to close by the middle of next year. It still needs approval from Joy Global stockholders.