US Mining equipment manufacturer and service provider Joy Global has announced its intention to buy the remaining share of Chinese mining equipment designer and manufacturer International Mining Machinery Holdings (IMM), and become its sole owner.
In December 2011, Joy Global acquired approximately 41% of IMM’s outstanding stock, bringing its total share in the company to 69%. It is now offering to buy the remaining shares via its wholly-owned Hong Kong subsidiary Joy Global Asia. The tender offer expires on February 3.
Joy Global says the IMM acquisition is a major step forward in expanding its hold in the Chinese mining equipment market. The move will give the company access to a majority slice of the Chinese market and enable it to meet rising demands in the Asian sub-continent.
Joy Global plans to gradually relocate production sites to low-cost regions like China, Poland and South Africa to give it a cost advantage against its peers.
The company’s biggest competitor Caterpillar has also strengthened its position in the emerging market through the Bucyrus acquisition, which will help it attain a stronger hold in the major Chinese and Indian mining markets.
Milwaukee-based Joy Global provides manufacturing, distributing and servicing equipment for surface and underground mining and bulk material conveyor systems to worldwide customers.
IMM is a leading designer and manufacturer of underground long-wall coal mining equipment in China and has a strong domestic position in supplying road headers and long-wall shearing machines.