Caterpillar Inc said it will make an offer to purchase China's ERA Mining Machinery Ltd to strengthen its mining business and ramp up investment in the fast-growing country, in a dual-option deal that could be worth up to $885 million.Shares in ERA, which makes underground coal mining equipment, rose 21.2 percent to HK$0.8 on Friday."Coal consumption in China is growing faster than anywhere else in the world," Caterpillar Group President Steven Wunning told Reuters in a telephone interview on Friday. Wunning said that China already consumes nearly half of the world's coal, creating a huge market for underground mining of the resource.Caterpillar will either pay HK$0.88 cash per share, and/or offer a loan note alternative, which will entitle ERA's loan note holders to receive a minimum of HK$0.75 and up to HK$1.15 per loan note upon redemption.
Caterpillar Inc. (Caterpillar) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Shares of CAT remained unchanged at $92.20. In the past year, the shares have traded as low as $67.54 and as high as $116.55. On average, 10967900 shares of CAT exchange hands on a given day and today's volume is recorded at 0.
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