Joy Global in talks to buy China's maker of coal-mining equipment

Mining OEM maker Joy Global Inc is in talks to buy China's International Mining Machinery Holdings Ltd (IMM), a maker of coal-mining equipment, Bloomberg yesterday reported, citing two people with knowledge of the matter.

Beijing-based IMM, which has a market value of about $1.09 billion, is controlled by private equity firm, The Jordan Company holding a 41-per cent stake.

The New York-based PE firm, which oversees about $6 billion of investor commitments, plans to sell its stake as part of the proposed deal, which under Hong Kong law, would trigger a mandatory offer for the rest of the company.

Based on International Mining's market value, a bid for the company would be the largest in the construction and mining machinery industry since Caterpillar's $8.61 billion takeover of Buycrus International last November, according to Bloomberg data.

IMM is a leading designer and manufacturer of underground longwall coal mining equipment in China. Its products include roadheaders, shearers, armoured-face conveyors and related products, and electric control systems.

Its end customers include all of the 50 largest coal producers in China, which collectively account for approximately 60 per cent of the total coal production in China. In August 2010, IMM completed the acquisition of Qingdao Tianxun Electric Co to become a leading provider of a complete longwall system solution in China.