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CAT increases presence in oil and gas and propulsion

Caterpillar forges ahead in the world of propulsion and drilling with latest deals.

Berg Propeller

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.

Tags: marine, N America, OEM Equipment, Scandinavia

Published 30th September, 2013

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