Caterpillar to raise Japan JV stake to 67 pct
NEW YORK, March 26 (Reuters) - Caterpillar Inc (CAT.N), the maker of construction equipment, said on Wednesday it would take a controlling stake in its Japanese joint venture with Mitsubishi Heavy Industries Ltd (7011.T) in a bid to add revenue from Asia.
The transaction calls for the venture, Shin Caterpillar Mitsubishi Ltd, to redeem half of Mitsubishi Heavy Industries' shares for about 50 billion yen (US$499 million).
Following the redemption, Caterpillar said it would own about 67 percent of the venture, while Mitsubishi Heavy Industries would own 33 percent. Caterpillar said it planned to rename the business Caterpillar Japan when the first phase of the transaction closes, expected in the third quarter.
Caterpillar said the 50-50 venture with Mitsubishi Heavy Industries was formed 44 years ago. The venture is primarily involved in the manufacture and sale of Caterpillar-branded hydraulic excavators, wheel loaders and tractors. (US$1 = 100.2 Japanese yen) (Reporting by Jonathan Stempel, editing by Will Waterman)
