Published on 21 Nov 2023 on Zacks via Yahoo Finance

Komatsu (KMTUY) Inks Deal to Buy American Battery Solutions

Komatsu Ltd. KMTUY announced that its wholly-owned subsidiary in the United States, Komatsu America Corp., agreed to acquire American Battery Solutions, Inc. (“ABS”). This move will allow Komatsu to design and manufacture its battery-powered construction and mining equipment.ABS, headquartered in Detroit, MI, is a developer and manufacturer of heavy-duty and industrial battery packs. The company offers conventional and custom battery systems that are tailored to the specific requirements of each customer.The acquisition will benefit from the ABS battery technology, and Komatsu's knowledge and network.The deal is expected to close on Dec 1, 2023, subject to necessary closing conditions. Komatsu will use the first equipment produced with ABS batteries to power mining equipment in North and South America, where electrification demand is high.ABS will continue to function as a stand-alone business entity inside Komatsu, executing current and prospective customer programs in the commercial vehicle segments.This acquisition will also aid Komatsu's efforts to contribute toward the realization of a decarbonized society. These efforts will assist Komatsu in meeting its management target of reducing CO2 emissions from product use by 50% by 2030 compared to 2010 levels. Moreover, it will also help in achieving the company's challenge target of achieving carbon neutrality by 2050.

Price Performance

Komatsu's shares have gained 17.1% in the past year compared with the industry’s growth of 10.9%.