CAT tenders for ERA Mining Machinery in China for $759M
Caterpillar is broadening its presence in China with an offer worth up to $759 million to acquire ERA Mining Machinery Ltd. and its wholly-owned subsidiary Siwei.
HONG KONG: Heavy equipment manufacturer Caterpillar Inc. is broadening its presence in China with an offer worth up to $759 million to acquire ERA Mining Machinery Ltd. and its wholly owned subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing Co. Ltd. (Siwei).
ERA primarily designs, manufactures, sells and supports underground coal mining equipment in mainland China through Siwei, a stand-alone company that specializes in mining roof support equipment.
The Peoria, Ill.-based company said the acquisition is aligned with its strategy to expand in the Chinese coal mining equipment industry. China produces almost half of the world’s coal, an amount Caterpillar expects to grow for several years.
The Siwei brand will continue as part of Caterpillar Global Mining. The company currently has approximately 4,300 employees.
Caterpillar has 18 locations for manufacturing, four R&D facilities, three logistics and parts centres and other offices in China, and it nine new facilities under construction.