Caterpillar Buys Chinese Firm - ENR | McGraw-Hill Construction

Description:
Regulators in China have approved Caterpillar Inc.’s offer to purchase the outstanding shares of Qingzhou City-based Shandong SEM Machinery Co. Ltd., which primarily manufactures construction wheel loaders. Terms of the deal were not disclosed, but the Chinese company says it has 2,200 employees and an annual capacity of 10,000 loaders. Peoria, Ill.-based Caterpillar previously owned a 40% stake in the firm, valued at $864,000, according to published reports, That initial deal was signed in March 2005. Other U.S. companies, such as Carlyle Group, have offers pending on Chinese manufacturers. Caterpillar has operated in China since the 1970s, but this is the company’s first acquisition there.

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