Joy Global Inc, a worldwide leader in high-productivity mining solutions, announced that its Board of Directors has unanimously approved a definitive merger agreement under which Komatsu America Corp, a subsidiary of Komatsu Ltd , will acquire Joy Global in a transaction valued at approximately $3.7 billion, including Joy Global?s outstanding indebtedness.

Komatsu intends to operate Joy Global as a separate subsidiary of Komatsu and retain the strength of the Joy Global brand names. The companies will align the organisation and operation for optimal customer support from Joy Global?s headquarters in Milwaukee, Wisconsin. Komatsu and Joy Global?s products and services are highly complementary and the combined organisation will continue to focus on safety, productivity and life cycle cost improvement for customers. Komatsu plans to leverage both companies? leading technologies to pursue product and service innovation to enhance mine safety and productivity. In addition, the companies employ complementary strategies and are committed to an integrated direct sales and service model.

?This is a compelling transaction that delivers substantial and certain value to our stockholders as well as expanded options for our customers and employees going forward,? said Ted Doheny, President and Chief Executive Officer of Joy Global.