May 17, 2013 / 1:30 PM / 6 years ago

Caterpillar says settles Siwei deal with cut in purchase price

A Caterpillar excavator machine is seen at a work site in Detroit, Michigan January 25, 2013. REUTERS/ Rebecca Cook

(Reuters) - Caterpillar Inc (CAT.N) and China-based Mining Machinery Ltd said on Thursday they have settled outstanding issues related to Caterpillar’s acquisition of mining equipment firm ERA and its Siwei unit through a reduction in the purchase price.

As part of the deal announced on Thursday, Caterpillar’s outstanding payment obligations to Mining Machinery were reduced by $135 million to $29.5 million.

Caterpillar reported in January that it had found “deliberate, multi-year, coordinated accounting misconduct” at Siwei.

The world’s largest maker of construction equipment had acquired ERA for $653.4 million (HK$5.06 billion) from Mining Machinery last June.

Siwei is China’s fourth-largest maker of hydraulic roof supports.

Reporting by Pallavi Ail in Bangalore; Editing by Stephen Coates

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