Caterpillar wins European union approval to buy MWM Holding

Peoria-based Caterpillar Inc., the world's largest maker of construction and mining equipment, won European Union approval to buy MWM Holding GmbH from 3i Group Plc.

The deal won't harm competition in the region, the European Commission said in an e-mailed statement today.

Caterpillar agreed last October to buy the Mannheim, Germany-based manufacturer of combustion engines for 580 million euros ($802 million). The regulator opened an in-depth probe into the deal in May amid competition concerns over so-called gas-fueled gensets used for electricity production.

“Although Caterpillar of the U.S. is active in the same field and the combined entity will be a formidable force to reckon with, the in-depth investigation showed that it would continue to face competition from a number of companies in Europe and worldwide,” the commission said.

Peoria, Illinois-based Caterpillar plans to close the MWM deal “before year-end 2011,” it said in July. The acquisition has “a bright future down the road,” said Michael DeWalt, Caterpillar's director of investor relations in July.