The acquisition of Milwaukee-based Joy Global Inc. by Japan-based Komatsu Ltd. received an early termination of the antitrust review waiting period on Wednesday, moving the deal one step closer to reality.
The early termination notice indicates the Federal Trade Commission and Department of Justice Antitrust Division have completed their review of the acquisition and will not be taking any action.
Joy Global announced the acquisition by Komatsu in July in a deal valued at $3.7 billion. The deal is still subject to approval by Joy Global shareholders and other conditions.
The company has set an Oct. 19 special meeting for shareholders to vote on the deal and to cast an advisory vote on executive compensation.
Komatsu initially offered Joy $17 per share in January and the two sides eventually settled on $28.30, even as Joy’s stock performance improved substantially over the first half of the year. The rising stock price reduced the premium for shareholders in the deal. Analysts have speculated there may be other bidders for Joy and at least three lawsuits have been filed by shareholders arguing the deal undervalues the company.
