Caterpillar Inc., Mitsubishi Heavy Industries Ltd. (MHI), and Shin Caterpillar Mitsubishi Ltd. (SCM) signed definitive agreements that include a share redemption plan that will result in Caterpillar owning 67% of SCM. The business will be renamed Caterpillar Japan when the first phase of the deal closes in the third quarter of 2008. The estimated value of the first phase of the share redemption is ¥50 billion. SCM is primarily involved in the manufacture and sale of Caterpillar-branded hydraulic excavators, wheel loaders, and track-type tractors. Caterpillar also recently acquired Lovat, a global manufacturer of tunnel boring machines used in the construction of metro, railway, road, sewer, water main, penstock, mine access, high-voltage cable, and telecommunications tunnels. The financial details of the acquisition are not being released.