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| Caterpillar to increase stake in Japanese JV Caterpillar Inc., Mitsubishi Heavy Industries Ltd. (MHI) and Shin Caterpillar Mitsubishi Ltd. (SCM) have signed definitive agreements that include a share redemption plan which will result in Caterpillar owning 67 percent of SCM. The business will be renamed Caterpillar Japan when the first phase of the deal closes, expected to be in the third quarter of 2008. The estimated value of the first phase of the share redemption is 50 billion JPY. Under the terms of the agreement, SCM will redeem half of MHI's shares in SCM. Once the share redemption is completed, Caterpillar will own 67 percent of the outstanding shares of the business, and MHI will own the remaining 33 percent. SCM also has an option, exercisable after five years, to redeem the remaining shares owned by MHI, which if exercised, would make Caterpillar the sole owner of SCM. The 50-50 joint venture between Caterpillar and Mitsubishi Heavy Industries was formed 44 years ago. SCM is primarily involved in the manufacture and sale of Caterpillar branded hydraulic excavators, wheel loaders and track-type tractors. SCM also owns several retail and rental stores that provide Caterpillar products and services in key markets in Japan. SCM production facilities in Akashi and Sagami are major manufacturing centers, providing Caterpillar products to Asia and the world. In addition, Shin Caterpillar Mitsubishi's hydraulic excavator development center in Akashi is the global home for the development of Caterpillar's hydraulic excavator product line. write your comments about the article :: © 2008 Construction News :: home page |