US diversified conglomerate General Electric (GE) yesterday said that it will acquire two mining equipment manufacturers, Australia's Industrea Ltd and US-based Fairchild International in order to expand in the $61 billion industry.
Fairfield, Connecticut-based GE will pay $700 million to buy Industrea.
The Brisbane, Queensland-based company manufactures and sells mining products and services, including underground drilling equipment, including methane gas drainage, underground flameproof and explosion proof vehicles and coal and ore body mining and transportation.
The company has customers in the US, South Africa, Russia, Indonesia and Papua New Guinea Australia, Chile and China.
Some of its clients include large mining companies like BHP Billiton, Rio Tinto, Anglo American, BMA, Barrick Gold, Vale, Xstrata, China Shenhua Energy Co, Jincheng Anthracite Mining Group and Shanxi Asian American Daning Energy Co.
The proposed acquisition will help GE in expanding its manufacturing footprint to Australia, expand its product portfolio to underground mining and increase its presence in key mining regions Australia and China.