Caterpillar forges ahead in the world of propulsion and drilling with latest deals.
Controllable pitch propeller Image: Berg Propulsion |
Two deals have widened the horizon for construction and plant manufacturer, Caterpillar. The first is a joint venture with Houston-based energy provider, Southwestern Energy, which extends CAT's presence in the oil and gas industry.
The deal, which supplied CAT's gas blending technology to a number of drilling rigs, received positive reviews - and a reasonable return on investment - from Southwestern, as well as boosting CAT's technology capabilities for the sector.
Meanwhile, CAT's acquisition of Swedish company, Johan Walter Berg AB - owners of Berg Propulsion - will take the US giant further into the marine industry through its power systems division. Berg is one of the world's leading suppliers of controllable pitch propellers - a world away from CAT's traditional, US-based construction industry heartland.
However, for some analysts, the question remains whether CAT's diversification can help its flagging performance and share price.