Komatsu spends $3.7 billion to acquire Joy Global
JOY Global's announcement that they have been acquired by Komatsu is set to deliver exciting career opportunities for employees.
Komatsu made the all cash purchase for an amount of $3.7billion, with the intention to operate Joy Global as a subsidiary.
"This is a compelling transaction that delivers expanded options," president and chief executive officer of Joy Global Ted Doheny said.
Both companies have established bases of operation in Mackay and are heavily involved in the region and the Bowen Basin.
"We believe this partnership is the right one. It will allow us to meet evolving needs of customers while continuing to lead the mining industry," Mr Doheny said.
"The mining industry continues to evolve; we are also seeing structural changes in the US and China's coal industries."
Mr Doheny said Joy Global employees would now be part of an even larger and more diversified company.
"We thank our dedicated employees for their continued hard work and commitment to solving mining's toughest challenges," he said.
Komatsu Ltd, established in 1921, is a diversified provider of industrial-use products and services.
Based in Tokyo, Japan, Komatsu employs more than 47,000 globally on consolidated basis.
A spokesman for Komatsu said the company intended to retain the strength of the Joy Global brand moving forward.
The purchase of Joy Global was set to allow both companies to thrive in the mining industry.
Both Komatsu's and Joy Global's services complemented each other and would allow for development in the mining sector.
Despite a downturn in the mining sector Mr Doheny is confident a partnership like this can bring stability.
This will allow for job security to those employed by both companies in the Bowen Basin and Mackay areas.