Japanese machinery company Komatsu has agreed a $2.9bn (€2.6bn) deal to acquire Joy Global, a rival machinery manufacturer based in the US. While Joy Global primarily manufacturers equipment for use in underground mining, the deal suggests that Komatsu is optimistic on the direction of commodity markets in the near term.

In the last 18 months, commodity prices from oil to copper to grain have endured a torrid time as increased global production capacity, which took years of heavy investment, came online at the same time as economic growth in emerging countries such as China began to slow.

Irish farmers and machinery enthusiasts will know Komatsu best for its range of wheel loaders used in many silage outfits around the country. Komatsu generates annual revenues of more than $17bn (€15.4bn), which will now be pushed over the $20bn mark once the Joy Global business is fully incorporated into the business.