US construction and mining equipment maker Caterpillar Inc (NYSE:CAT) has agreed to sell its Bucyrus mining equipment distribution and support business in certain Canadian provinces to its local dealer Hewitt Equipment Ltd and its unit Atlantic Tractors & Equipment Ltd, the parties said.
The agreement calls for Caterpillar Global Mining LLC to dispose of the Bucyrus equipment distribution and support activities in the province of Quebec, Western Labrador and the Maritimes. The transaction is scheduled for completion on 1 August. Its financial terms were not disclosed.
The acquisition of these operations will extend the product offering of Hewitt for its mining clients, the buyer’s president and CEO Jim Hewitt stated.
Over the last several months, the US company had announced similar deals with other dealers. At the end of May 2012, it said that Caterpillar Global Mining had signed an agreement to shed the Bucyrus equipment distribution and support operations in South Africa and Botswana to Barloworld Ltd (JNB:BAW) for USD115m (EUR94.9m). Before that, the company had closed similar transactions with Sime Darby Industrial and Finning International Inc. It also has pending deals with the latter as well as with WesTrac Pty Ltd and Ferreyros SAA.
Caterpillar said further it continues to negotiate such transactions with other Cat dealers with mining operations on their territory.