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Caterpillar bets on mining with bid for Bucyrus

Caterpillar is placing a big bet on the global commodities boom with its proposed $7.6-billion (U.S.) bid for mining-equipment maker Bucyrus a move expected to have a positive knock-on effect for Canadian equipment distributors.

Peoria, Ill.-based Caterpillar's decision to increase its exposure to mining as global demand for everything from coal and iron ore to copper and gold continues is a strong vote of confidence in mining's long-term potential, Desjardins Securities analyst Benoît Poirier said.

"We view this acquisition as a positive development for Canadian heavy equipment distributors - especially for Finning

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About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More

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