JP Morgan (NYSE:JPM) Helps Caterpillar (NYSE:CAT) Land Bucyrus (Nasdaq:BUCY)

JP Morgan (NYSE:JPM), which was the sole financial advisor for Caterpillar (NYSE:CAT) in its pursuit of Bucyrus (Nasdaq:BUCY), helped the giant equipment-maker land the company for $8.6 billion. The deal includes the $7.6 billion debt held by Bucyrus.

Caterpillar will acquire Bucyrus by taking over its debt, balance sheet cash, and close to $2 billion in equity.

The deal is about a 32 percent premium over the share price of Bucyrus.

Bucyrus adds its large mining equipment business to Caterpillar, which is more concentrated in construction equipment. Mining equipment should be more in demand in the years ahead, although, depending on the sustainability of commodity prices like oil, gold, iron ore and silver, that could be strong as well.

Either way, Caterpillar will have a strong position because of the cyclical nature of both commodity sectors, allowing them to have solid performance when one or the other is down.

Caterpillar was trading up at $82.58, gaining $1.54, or 1.90 percent 2:47 PM EST. Bucyrus exploded by $20.19 a share, soaring to $89.85, gaining $20.23, or 29.06 percent as of 2:47 PM EST.