Jun. 29, 2010 (China Knowledge) - Caterpillar Inc, the world's largest producer of bulldozers and excavators, said on Monday that it has reached an agreement with Xuzhou Construction Machinery Group to acquire the latter's 15.87% stake in Caterpillar Xuzhou Ltd, a joint venture between Caterpillar and XCMG, sources reported.
Upon the completion of the acquisition, Caterpillar Xuzhou, which was established in 1995, will become a wholly-owned subsidiary of Caterpillar.
Caterpillar didn't disclose the terms of the transaction. The acquisition is still subject to Chinese regulatory approval.
Caterpillar's excavator expansion plans are expected to complete in 2014. The firm's China-based excavator capacity will increase by 400%.
Caterpillar and Navistar International Corp are finalizing a truck and engine manufacturing tie-up with China's Anhui Jianghuai Automobile Co<600418
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