The companies announced an agreement in July for Komatsu to acquire Joy Global. During their meeting last Monday, Ohashi and Doheny reaffirmed their commitment to pursue new innovations that drive customer benefits after the acquisition is complete. The companies are working to finalise the transaction by mid-2017.
“Our customers are sharing very positive feedback about the agreement. Some have approached us at MINExpo to congratulate us on our decision,” Ohashi said. “We are working closely with Joy Global and relevant authorities to move the process forward.”
Doheny agreed, noting industry recognition of the complementary nature of the two companies’ product and service offerings.
“Many of our customers and other business partners see the benefit of combining companies: a broader offering of products, systems and solutions across a wider scope of mining and construction applications,” Doheny said. “Both companies believe in having the best products, direct service, being operationally excellent, and having the best people in the world.”
Interestingly, the deal was also mentioned during Caterpillar’s MINExpo press conference. A journalist asked CEO Doug Oberhelman how he felt about the Komatsu-Joy acquisition compared to Caterpillar's much more expensive 2011 acquisition of Bucyrus.
“Compared to MINExpo 2008, we could not offer the product line-up we have today if we hadn't made that acquisition. We also have to look at the medium- to long-term,” he explained.
"We've had four years of integration, for example our rotary drill has all-new components.
"In the long term, it's a no-brainer. I don't think any of us foresaw a 90% drop in the industry. However, I'm very happy with where we are, and delighted at some of the fine tuning that we're doing."