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UPDATE 1-Caterpillar sells Russian Bucyrus units to Barloworld
November 9, 2012 / 12:10 PM / 5 years ago

UPDATE 1-Caterpillar sells Russian Bucyrus units to Barloworld

* To pay $50 million for the business

* shares fall more than 2 percent (Adds details, shares)

JOHANNESBURG, Nov 9 (Reuters) - 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 Russia.

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 2012.

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)

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