© Reuters. Man strolls past the headquarters of Komatsu Ltd in Tokyo
TOKYO (Reuters) – Japan’s Komatsu Ltd has actually accepted purchase U.S. mining devices producer Delight Global Inc (NYSE:-RRB- for about $2.9 billion, its biggest-ever acquisition, in a quote to reinforce its core mining equipment business. The Japanese maker of construction and mining equipment said on Thursday that it would purchase 100 percent of the Milwaukee, Wisconsin-based company for $28.30 per share, about a 20 premium to Wednesday’s closing rate. Delight Global, which creates yearly revenue of around $3.2 billion, manufactures equipment for both underground and surface mining, while Komatsu makes devices for surface mining only. The deal is expected to close in mid-2017. Komatsu said that although need for mining equipment has fallen greatly from its peak as commodity rates dropped, it expects the sector to grow in the long term. “Economic rationale will require use of larger devices in surface area mining in addition to additional advancement of underground mining,” Komatsu stated. Mining equipment makers have been hard-hit by the depression in commodities and their fortunes are only starting to reverse. While Delight Global shares are up this 86 percent this year, they are still at around half their levels at the start of 2015. Komatsu prepares to fund the acquisition with funds on hand and bank loans. The deal is subject to approval of Delight Global investors and the essential governing green light. Komatsu shares in Tokyo, currently closed when the release was issued, wound up 2.3 percent at simply under 2,082 yen on Thursday, valuing the group at around 1.97 trillion yen ($18.4 billion). Disclaimer: Fusion Media want to remind you that the data included in this site is not always real-time nor precise. All CFDs (stocks, indexes, futures) and Forex prices are not supplied by exchanges however rather by market makers, therefore prices may not be precise and might differ from the actual market price, meaning prices are a sign and not appropriate for trading purposes. Therefore Fusion Media does n`t bear any responsibility for any trading losses you might sustain as a result of using this data. Combination Media or anyone included with Blend Media will decline any liability for loss or damage as a result of dependence on the information including data, quotes, charts and buy/sell signals consisted of within this site. Please be totally informed regarding the dangers and expenses connected with trading the monetary markets, it is among the riskiest investment kinds possible.