Komatsu One Step Closer To Joy Global Acquisition

Shareholders of Milwaukee mining equipment manufacturer Joy Global this week approved the proposed acquisition of the company by Japanese equipment giant Komatsu.

Komatsu and Joy Global announced the merger agreement, valued at $3.7 billion, in July. The deal could be finalized early next year if remaining closing conditions and regulatory approvals are met.

The transaction was previously cleared by antitrust regulators in the U.S. and Canada.

“Stockholder approval represents a key milestone on the path to completing the transaction, which will deliver compelling value to Joy Global stockholders and further our ability to lead the mining industry with product and service innovation to enhance mine safety and productivity," President and CEO Ted Doheny said in a statement.

Komatsu plans to maintain Joy Global as a separate subsidiary and keep its brand name, but the companies will align their operational and organizational structures.

The deal would make Komatsu and Illinois-based rival Caterpillar the world's leading producers of mining equipment, although analysts noted that sector struggled amid sliding prices for commodities such as coal, copper and iron ore.