Manufacturing giant Caterpillar has received approval to acquire a Chinese mining equipment maker in an $8.8 billion deal.
The Peoria-based company said Friday that it had cleared the final major regulatory hurdle necessary to close the deal: approval from the Chinese government. The Ministry of Commerce of the People's Republic of China gave its formal approval of the buyout, which is expected to close shortly. Caterpillar secured permission for the deal from the U.S. Department of Justice in May.
Caterpillar will acquire mining equipment company Bucyrus International, which makes surface mining equipment used to unearth coal, copper, iron ore, oil sands and other minerals. Bucyrus is headquartered in South Milwaukee, Wisconsin.
Caterpillar is the world's largest construction and mining equipment maker. Its stock fell $2.43, or 2.2 percent, to $109.20 in morning trading, while shares of Bucyrus gained 12 cents to $91.97.