Through a Komatsu Group company, Komatsu Ltd has entered the definitive agreement, based on the basic agreement with Mitsui & Co., Ltd (announced on 27 April 2015), for Komatsu to purchase 60% of equity of Road Machinery Co., S.A. de C.V, Mitsui's subsidiary in Mexico, which services Komatsu mining equipment. On a premise of approval of concerned authorities, Komatsu is working to complete the purchase for approximately February 2016.
After purchasing the 60% equity of Road Machinery, around April 2016, Komatsu intends to integrate Komatsu Maquinarias Mexico S.A. de C.V. (KMEX), a Komatsu's indirect wholly-owned subsidiary held through Komatsu Group companies and a distributor of Komatsu construction equipment, and Road Machinery to establish a new distributor of construction and mining equipment, with equity shares of 60% owned by Komatsu and 40% by Mitsui.
Komatsu has indicated Mexico is an important market for its construction and mining equipment business and so the company is working towards further expansion here by managing this distributor, which covers both construction and mining equipment as an original equipment manufacturer.
Komatsu has reported that it expects a minimal effect on its consolidated business results from the transaction.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/mining/04012016/komatsu-to-purchase-equity-of-service-company-for-mining-equipment-in-mexico-4/