Some­what less rosy

Finweek English Edition - - COMPANIES & MARKETS -

IN­DUS­TRIAL EQUIP­MENT sup­plier Eqs­tra will be nav­i­gat­ing a dif­fi­cult sit­u­a­tion this year. Eqs­tra cur­rently dis­trib­utes the full range of Bucyrus In­ter­na­tional’s min­ing equip­ment in south­ern Africa, fol­low­ing this group’s 2009 ac­qui­si­tion of Terex Cor­po­ra­tion’s min­ing di­vi­sion. The thorn in Eqs­tra’s side is com­peti­tor Bar­loworld’s an­nounce­ment, made to­wards year-end 2010, that its key part­ner – Cater­pil­lar – had signed its own US$8,6bn deal with Bucyrus. That’s good news for Bar­loworld, as the in­dus­trial gi­ant is ef­fec­tively trans­formed into a on­estop min­ing equip­ment shop. But the sit­u­a­tion for Eqs­tra is slightly less rosy.

An­a­lysts are concerned Bar­loworld will use its own dis­tri­bu­tion chan­nels to mar­ket Bucyrus’s ex­ten­sive range of equip­ment and by­pass Eqs­tra al­to­gether. Eqs­tra does have a dis­tri­bu­tion agree­ment with Bucyrus un­til end-2013, and its man­age­ment says the

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.