Mining equipment maker Joy Global Inc (JOYG.O) said it would purchase a 41 percent stake in China's International Mining Machinery Holdings Ltd (1683.HK) (IMM) for $585 million to expand in the Chinese coal market, the world's largest. The agrrement calls for Joy Global to buy 535 million IMM shares from TJCC Holdings Ltd at HK$8.50 each. Joy Global will be required to make an offer for the remaining 59 percent of IMM once the share purchase agreement is completed. IMM earned $90 million in 2010 on sales of $299 million. Joy Global said the deal was part of its strategy of expanding in emerging markets. Although major mines in China use foreign equipment, many others rely on domestic machinery, it said.
Joy Global Inc. is a manufacturer and servicer of mining equipment for the extraction of coal and other minerals, and ores. Shares of JOYG traded higher by 3.56% or $3.38/share to $98.25. In the past year, the shares have traded as low as $53.13 and as high as $103.44. On average, 1834310 shares of JOYG exchange hands on a given day and today's volume is recorded at 465434.
Source
