Investopedia: Digging Into A Joy Global Rumor

About a month ago I reviewed mining equipment company Joy Global's (Nasdaq:JOYG) earnings and speculated that "It might also be worth wondering, though, whether the company would consider additional deals - say like the acquisition of International Mining Machinery, China's leading mining equipment company - to expand into particular regional markets." Now Bloomberg, Reuters, and several other sources are reporting rumors that the two companies are in advanced merger discussions. 

The Deal That May Be  
Prior to these rumors leading to a halt in trading of International Mining Machinery's (Nasdaq:ICMHF.PK) shares on the Hong Kong exchange, the company carried a $1.1 billion market valuation. Although IMM's share price has been depressed a bit on fears of a slowdown in economic activity and the widespread expectation that major owner Jordan (which owns 41% of shares) will be selling shares, Joy Global will likely need to offer something on the order of $1.3 billion to get a deal done. 


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