Caterpillar announced they are acquiring Bucyrus International. Caterpillar is number 2 in their industry segment and #153 in The Global 5000 list. Bucyrus is ranked 65 in Farm and Industrial Equipment industry and #1953 in the Global 5000.
This industry segment has really felt the effect of the recession. Industry growth in 2007 was 14.9%, followed by 12.2% in 2008. Then came 2009 where revenues fell by 20.8%. As we come out of these financial times and the economy starts to pick up, corporations have stashes of cash. And the M&A activity is picking up — this is evidence of that trend.
The top 10 companies in this segment are:
- Mitsubishi Heavy Industry
- Hyundai Heavy Industry
- Doosan Infracore
- CNH Global