Wednesday, December 14, 2011

#Flash* Sime Darby buys part of Caterpillar distribution biz for RM1.1b cash

KUALA LUMPUR: SIME DARBY BHD []'s industrial division buys Caterpillar Inc's former Bucyrus distribution business involving mining machinery, in Australia, Papua New Guinea and New Caledonia for US$360 million (RM1.1 billion) cash.

Sime Darby said on Wednesday the acquisition would enable its industrial division to strengthen its position in the mining industry by offering a wider range of mining equipment and services to its customers.

'The acquisition will also allow Sime Darby's industrial division to leverage its position in Australasia's rapidly growing mining industry (Queensland, Northern Territory and Papua New Guinea),' it said.

Sime Darby said the Bucyrus distribution assets were mainly in Queensland, Australia and comprises of owned and leased PROPERTIES [], plant and equipment, inventories, maintenance contracts, order book.

In a separate statement, Caterpillar said this deal marked the first of several that are expected to transition the product distribution and support of former Bucyrus machinery to Cat dealers that support mining customers around the world.

'While not part of the transaction, Caterpillar also intends to start selling former Bucyrus mining products through Sime Darby's other Cat dealerships,' said Caterpillar.

Hastings Deering, the principal Australian subsidiary of Sime Darby Industrial, has a significant field population of former Bucyrus machines in its territories.

Meanwhile Sime Darby executive vice president who heads Sime Darby Industrial, Scott Cameron said: 'We are very excited to be the first Cat dealership to take on the former Bucyrus distribution business.'

He added the addition of the former Bucyrus product line would enable Sime Darby Industrial to expand its presence in the region and offer mining customers an unparalleled range of products and services.

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