Caterpillar plans to buy Electro-Motive Diesel for $820 million

Caterpillar's unit for rail-car products and services said it will buy locomotive manufacturer Electro-Motive Diesel for $820 million. The acquisition will position Caterpillar to go head to head with General Electric because it will make Caterpillar the No. 2 provider of locomotive and rail services in the country. "This acquisition represents the latest step in our strategic plan to aggressively grow our presence in the global rail industry," said Caterpillar Vice Chairman Doug Oberhelman.

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