Komatsu acquires Joy Global
Komatsu has completed the acquisition of Joy Global by Komatsu America, a wholly-owned subsidiary of Komatsu, after receiving all necessary regulatory approvals.

The consideration of the acquisition of common shares of Joy Global was approximately US$2.8 billion with advisory fees and other expenses valued at approximately JPY3.4 billion.

Komatsu will disclose any effects of the acquisition on its consolidated financial statements in case any reportable matter arises.

The business combination resulting from the acquisition is expected to have certain effects on its accounting procedures.

For FY,2017 and onward, Komatsu plans to include inventories after conducting a fair value measurement in its cost of sales and also recognise expenses for the depreciation of intangible fixed assets.

It will conduct a fair value measurement of the acquired assets and assumed obligations pursuant to Financial Accounting Standards Board Accounting Standards Codification 805. After the completion of an accounting audit it will finalise the quantitative effects of such treatments within one year.

“The combination of our  surface mining equipment with the P&H, Joy and Montabert brands of surface and underground products will allow us to offer a complete range of mining solutions for our customers,” states Tetsuji Ohashi, president and CEO of Komatsu.

“We plan to build on the strength of our shared cultures, including our unwavering belief in safety first and our passion for providing innovative solutions, to become an unrivalled mining solutions and services provider.”

All images courtesy of Komatsu