EU Warns $810M Caterpillar-MWM Deal May Not Fly

Law360, New York (May 5, 2011, 11:48 AM EDT) -- The European Commission on Thursday hit the brakes on Caterpillar Inc.'s plan to buy German alternative energy engine maker MWM Holding GmbH for $810 million in cash, opening an in-depth investigation and warning that the deal could be anti-competitive.

The competition hurdle could delay Caterpillar's purchase, announced in October, which CEO Doug Oberhelman sees as a natural fit for the Peoria, Ill.-based global heavy machinery maker and a potential boost toward its stated commitment to invest in sustainable products.

Last month, after Caterpillar offered European officials undisclosed remedies...
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