The transaction, which was initially presented to the industry on July 21, 2016, aims to leverage the companies' synergies and enhance Komatsu's existing product line with Joy's extensive range of underground mining equipment and smart technologies.
In the end, the acquisition of Joy Global's common shares cost Komatsu US$2.82 billion, and advisory fees and other expenses were approximately ¥3.4 billion (US$310 million), bringing the total bill to a cool US$3.7 billion once Joy's indebtedness was taken into account. Joy Global shares have now been delisted from the NYSE and will no longer be publicly traded.
Going forward, Joy Global will be renamed Komatsu Mining Corp and will operate as a subsidiary of Komatsu, and Komatsu said "the company will continue to promote and invest in the P&H, Joy and Montabert product brands". The question is: will we be seeing more yellow equipment underground, or will the traditional Joy orange outfit be retained? Either way, although the exact timing of the rebranding is yet to be announced, Joy employees are already using Komatsu email addresses, so we can assume the change is imminent.
More importantly, will Komatsu's existing global mining operations/facilities be rolled into this new company?
"The combination of our Komatsu-brand surface mining equipment with the P&H, Joy and Montabert brands of surface and underground products will allow us to offer a complete range of mining solutions for our customers," said Tetsuji Ohashi, president and CEO of Komatsu. "We plan to build on the strength of our shared cultures, including our unwavering belief in safety first and our passion for providing innovative solutions, to become an unrivalled mining solutions and services provider."
Of course, Komatsu is not just buying products; with the Joy acquisition come 10,000 new employees with significant collective expertise and a very large client base. And, while Komatsu Mining will make Joy's former HQ its new base, it will be interesting to see which manufacturing and distribution operations the company keeps, and which are consolidated; I can't imagine it will want to keep them all.
At the helm of the new business will be Jeffrey Dawes, former head of Komatsu Latin America, who, according to his communications team, is currently touring Joy's major facilities and meeting with his new teams.
Understandably, and quite sensibly, Dawes wishes to talk to his staff before the press, so an interview will have to wait. Rest assured though, I'm on the case. Watch this space...