Hot Stocks: Caterpillar Moves Into Mining with $8.6 Billion Bid for Bucyrus

Caterpillar Inc. (NYSE: CAT ), the world's leading manufacturer of construction equipment, yesterday (Monday) said it would pay $8.6 billion for Bucyrus International Inc. (Nasdaq: BUCY ) – a maker of large-scale surface and underground mining machinery. Caterpillar said in a statement the deal would allow the company to continue its expansion into mining and gain from the " robust long-term outlook for commodities. " The company is betting that emerging markets' growth will "push demand" for coal and "everything that comes out of the ground." Caterpillar will pay $7.6 billion for Bucyrus and assume another $1 billion of its debt. The deal values Bucyrus at $92 a share, which is a 32% premium to the company's Nov. 12 closing price of $69.92.