* To pay $50 million for the business
* shares fall more than 2 percent
(Adds details, shares)
JOHANNESBURG Nov 9 South African industrial
firm Barloworld said on Friday it will pay $50 million
for Caterpillar's Bucyrus distribution and support
business in Russia.
Caterpillar, the world's largest maker of mining equipment,
last year acquired Bucyrus for $7.6 billion. Caterpillar
typically sells through a network of independent dealers, of
which Barloworld is one.
The deal, which bets on buoyant demand for trucks and
loaders from mining companies in Russia, comes two days after
Barloworld gave an optimistic outlook for equipment demand in
Shares in Barloworld, which have hardly moved so far this
year, fell 2.3 percent at 72.57 rand by 1147 GMT, lagging behind
a 0.7 percent decline in the JSE All-share index.
The transaction is expected to be implemented on 3 December
Barloworld, the biggest dealer of Caterpillar heavy-duty
machines in southern Africa, reached a similar agreement with
Caterpillar in May to distribute Bucyrus products in South
Africa and Botswana.
(Reporting by Tiisetso Motsoeneng; editing by David Dolan)