Caterpillar Inc. believed acquiring China’s Zhengzhou Siwei was a way for the U.S. company to boost its fortunes in a lucrative but challenging market.
Siwei’s sales and profit growth were surging. And the company offered access to China’s mining industry, where domestic companies were prospering.
Siwei, which sells mine-safety equipment, also boasted an American pedigree. Its controlling shareholders were James E. Thompson III, the scion of one of Asia’s most successful expatriate families, and Emory Williams, a former head of the American Chamber of Commerce in China. Caterpillar paid about $700 million in June for Siwei’s parent, ERA Mining Machinery Ltd.
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Wall Street Journal via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/zaac4c2jaLc/
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