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PEORIA, Ill. (AP) — Caterpillar Inc. said Monday that its global mining business has agreed to sell part of its Bucyrus equipment distribution business in Canada to Hewitt Equipment Ltd., its authorized dealer in that region.
Financial terms were not disclosed.
The deal with Hewitt is part of Caterpillar's strategy to shift product distribution and support of former Bucyrus machinery to Caterpillar dealers across the world.
The Peoria, Ill.-based company has announced similar agreements with other dealers over the past several months.
Under the deal announced Monday, Hewitt will get the Bucyrus distribution and support business in the Canadian province of Quebec, as well as its Western Labrador and Maritimes regions.
Hewitt said the acquisition will allow it to provide its mining customers with a broader lineup of products. The deal is expected to close on Aug. 1.
Caterpillar said it continues to hold talks with other dealers that have mining activity in their territories and will continue to operate the former Bucyrus distribution business until sales have occurred in a given territory.
Caterpillar shares rose 66 cents to $81.61 in afternoon trading. Its shares are down 30 percent from their 52-week high of $116.95 in late February.