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Joy Global, Inc. Message Board

  • jeffreysauctions jeffreysauctions Oct 2, 2012 10:17 AM Flag

    Motley fool says GE will buy JOY and split with CAT

    Story makes alot of sense, see headlines for story, wont let me post

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    • GE Mining already sees revenues of $2 billion, so even if current revenue sources stagnate, that leaves only $3 billion worth of revenues yet to be filled via acquisitions. This is another strike against Joy Global, which has TTM revenues of $5.4 billion, and Weir, which reported $3.7 billion in revenues at the end of 2011, as they are both too large to merit consideration.

      If, however, GE were to buy Joy Global for its Underground Mining Machinery business, which coincidentally accounts for roughly $3 billion in revenues, and sell the Surface Mining division to Caterpillar, synergies could result for both industrial titans without putting the two firms in direct competition. GE could augment its underground mining equipment value chain as Caterpillar furthers its dominance in surface mining machinery.

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