SEC probes Joy Global over acquisition of Chinese firm
Joy Global (NYSE:JOY) has become the second U.S. maker of mining equipment to run into an accounting controversy over an acquisition in China, as the Milwaukee-based company disclosed late on Thursday that it’s being investigated by The Securities and Exchange Commission (SEC).
The probe refers to Joy’s 2012 acquisition of International Mining Machinery Holdings Ltd of China for about $1 billion and related accounting matters.
"While it is not possible to predict the timing or outcome of the SEC inquiry, we currently believe that this matter will not have a material adverse effect on the company's consolidated results of operation, financial position or liquidity," Joy Global said in the statement.
Rival Caterpillar (NYSE:CAT), the world’s largest mining equipment maker, disclosed last week it had also received a subpoena from the SEC last week, requesting information about its accounting for goodwill related to the $8.6 billion acquisition of South Milwaukee-based Bucyrus International Inc. in 2011.
Joy Global, the world’s No.1 underground mining equipment manufacturer, stated that it is cooperating with the ongoing investigation.