Caterpillar Inc. (CAT) Settles China Deal With Cut In Purchase Price

Caterpillar Inc. (NYSE:CAT) announced Thursday that it would pay $29.5 million to the sellers of Chinese equipment maker to resolve all outstanding issues.

This deal reached by the world’s largest maker of construction equipment is considerably less than the $164.5 million that it was contracted to pay to Emory Williams and James Thompson Jr., who controlled Siwei via a Hong Kong-listed entity, and two other parties.

Caterpillar Inc. (NYSE:CAT) said it had reached a settlement to resolve disputes arising from its $700 million purchase of ERA Mining Machinery Ltd (HKG:8043), cutting its outstanding obligations on the deal by $135 million. The giant construction equipment maker took a...