U.S. heavy equipment manufacturer Caterpillar Inc. (NYSE: CAT) announced they would sell part of their Bucyrus distribution business to Malaysian conglomerate Sime Darby earlier this week. Caterpillar acquired Bucyrus, an American surface and underground mining equipment maker, in 2010 for $7.6 billion. Sime Darby will pay $360 million for the share of Bucyrus they will receive.
Sime Darby is a leading Malaysian multinational based in Kuala Lumpur and are involved in various sectors including plantations, property, motors, industrial equipment, energy and utilities. The company is also distributes Caterpillar products in Asia.
“The addition of former Bucyrus product line is a unique and exciting opportunity to grow Sime Darby Industrial’s presence in the region and offer mining customers an unparalleled range of products and services,” said Scott Cameron, Sime Darby’s executive vice-president, who heads Sime Darby Industrial Cat.
Reports indicate the multi-million dollar deal encompasses the Sime Darby Industrial Cat dealership located in Queensland and Northern Territory of Australia, Papua New Guinea and New Caledonia. This transaction marks the first of several expected to take place that will transition product distribution and support of former Bucyrus equipment to CAT dealers that support mining customers around the world. Caterpillar also intends to begin selling former Bucyrus mining products through Sime Darby’s other CAT dealerships.