Caterpillar to sell some South African Bucyrus units

Wed May 30, 2012 8:57am EDT

The Caterpillar logo is seen on a tractor in Gilbert, Arizona October 20, 2009. REUTERS/Joshua Lott

The Caterpillar logo is seen on a tractor in Gilbert, Arizona October 20, 2009.

Credit: Reuters/Joshua Lott

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(Reuters) - Caterpillar Inc (CAT.N) reached a $115 million deal to sell South African industrial group Barloworld Ltd (BAWJ.J) its Bucyrus distribution and support business in South Africa and Botswana.

The move follows Caterpillar's $7.6 billion 2011 takeover of Bucyrus, a maker of mining equipment, and follows the world's largest maker of earth moving equipment's normal approach of selling through independent dealers.

Barloworld also agreed to acquire other Bucyrus distribution businesses in South Africa and Botswana that had been licensed to Eqstra Holdings Ltd (EQSJ.J) affiliates for about $60 million.

The companies expect the deals to close in the third quarter.

(Reporting By Scott Malone; Editing by Gerald E. McCormick)

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