Caterpillar (CAT) Ready to Sell Bucyrus Business to Barloworld

Caterpillar Inc. (NYSE:CAT) has decided to sell its Bucyrus equipment business unit in South Africa and Botswana to Barloworld Ltd for a deal of almost $115 million.

The sale consists of deals with Eqstra NH Equipment Limited and Eqstra Botswana limited for the acquisition of Eqstra’s South Africa and Botswana Bucyrus distributorship and mining services departments. That would increase the overall worth of the agreement to almost $175 million, according to both companies report.

Barloworld supplies brands like equipment and car rentals in different markets. The agreement with Barloworld is an element of Caterpillar’s policy to changeover product supply and support of earlier Bucyrus machinery to Caterpillar suppliers all over the world.

The deal with Barloworld, from Caterpillar Global Mining LLC, is predicted to settle in the latter half of this year, at which point almost 470 Bucyrus and Eqstra employees are anticipated to move over to Barloworld.

Its competitors include CNH Global NV (ADR) (NYSE:CNH) that slipped -4.73% to $39.30 with the total traded volume of 266,375.00 shares.

Other capital goods stocks with bullish trend include MGT Capital Investments Inc. (NYSEAMEX:MGT) up 2.65% to $4.98, Harbinger Group Inc. (NYSE:HRG) up 1.04% to $4.85 and Rand Capital Corporation (NASDAQ:RAND) up 0.36% to $2.80, whereas with bearish trend include The Dow Chemical Company (NYSE:DOW) down -2.10% to $31.31, United Technologies Corporation (NYSE:UTX) down -1.62% to $73.87 and 3M Co (NYSE:MMM) down -1.49% to $84.45.

Caterpillar Inc. (NYSE:CAT) slipped -3.11% or -$2.88 to trading at $89.65 at 10:55AM EDT following it hit intraday high level of $91.00. The total traded volume in the current trading session is 1.90 million shares as compared to average 6.77 million shares. Its fifty two week trading range is $67.54 – $116.95. The total market capitalization reached $58.52 billion.

The stock price was ahead its 52 week low price with 35.06% and it lagged behind -22.77% from its 52 week maximum mark. Stock price volatility for last month remained 2.57%. In its share capital, the company has 652.50 million outstanding shares out of which 645.98 million shares have been floated in the market. For now, stock ownership with company’s management remained 0.21%.

CAT presented an optimistic weekly performance of 0.59% with respect to its rate of return and it remained -11.51% for the month. However, the performance for a quarter experienced a negative change of -19.74% and it slumped -9.90% for a year and its year to date performance remained in green with 3.01%.

Current stock price is in the downbeat territory taking into account of 20 days moving average with -4.77% and continued bearish run for 50 days moving average with -11.37%. Its earning per share for the past twelve months was $7.92. Company’s beta coefficient was at 1.85. Beta measures the amount of market risk associated with market trade.

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