Caterpillar to Buy Commodities Play Bucyrus for $7.6 Billion
In order to take advantage of the global boom in mining, heavy equipment company Caterpillar (NYSE:CAT) announced it would acquire mining equipment maker Bucyrus (Nasdaq:BUCY) for a 30% premium.
Bucyrus generates over $1 billion in revenue from mining operations in fast-growing emerging markets. Caterpillar clearly sees a long run for the bull market that's driving prices for mined commodities like iron ore, coal and precious metals, like gold and silver. Mining companies are expected to boost spending by 50%, to $113 billion, in 2011.
"It's a great time to invest in mining," said Caterpillar CEO said Doug Oberhelman. "Demand for minerals, for coal, for lots of things that come out of the ground will be increasing..."
This is great news for investors who may be wondering if the commodity bull market will continue and where to find profits.
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