Mining OEM maker Joy Global Inc is in talks to buy China's International Mining Machinery Holdings Ltd (IMM), a maker of coal-mining equipment, Bloomberg yesterday reported, citing two people with knowledge of the matter.

Beijing-based IMM, which has a market value of about $1.09 billion, is controlled by private equity firm, The Jordan Company holding a 41-per cent stake.

The New York-based PE firm, which oversees about $6 billion of investor commitments, plans to sell its stake as part of the proposed deal, which under Hong Kong law, would trigger a mandatory offer for the rest of the company.

Based on International Mining's market value, a bid for the company would be the largest in the construction and mining machinery industry since Caterpillar's $8.61 billion takeover of Buycrus International last November, according to Bloomberg data.

IMM is a leading designer and manufacturer of underground longwall coal mining equipment in China. Its products include roadheaders, shearers, armoured-face conveyors and related products, and electric control systems.

Its end customers include all of the 50 largest coal producers in China, which collectively account for approximately 60 per cent of the total coal production in China. In August 2010, IMM completed the acquisition of Qingdao Tianxun Electric Co to become a leading provider of a complete longwall system solution in China.

In December 2010, IMM entered into a joint venture with Shanxi Coal Transportation and Sales Group Co in order to meet the enormous demand for coal mining machinery in the rapidly consolidating coal mining market in Shanxi.

IMM, which posted 2010 net income of $53.9 million on revenues of $299 million, secured a number of new international orders last year with the company shipping its first roadheader to Russia, its first overseas order, which was soon followed by other orders to India and Australia.

Milwaukee, Wisconsin-based Joy Global is looking to expand its mining product lines in order to enhance its product portfolio by developing technology in-house or by acquiring rival companies.

Joy Global manufactures and markets original equipment and aftermarket parts and services for both the underground and above-ground mining industries and certain industrial applications. Its products and related services are used extensively for the mining of coal, copper, iron ore, oil sands, gold and other mineral resources.

Its facilities and equipment service centers span six continents and more than twenty countries.

In June 2011, Joy Global acquired LeTourneau Technogies, the mining equipment and drilling systems business unit of Rowan Companies for $1.1 billion in order to add high-capacity LeTourneau front-end loaders for mining operations while giving Joy Global a foothold in the oil and gas drilling equipment market. LeTourneau accounted for 30 per cent of Rowan sales in 2010.