The Caterpillar logo is seen on a tractor in Gilbert
The Caterpillar logo is seen on a tractor in Gilbert, Arizona, October 20, 2009. REUTERS

Caterpillar Inc. (NYSE: CAT), the world's biggest heavy machinery maker, will pay about $447 million to Mitsubishi Heavy Industries Ltd. to gain sole control of their joint venture, Caterpillar Japan Ltd.

The Peoria, Ill., company, which two-thirds of the joint venture, will buy Mitsubishi's one-third share in Caterpillar Japan, which makes earth-moving equipment, the company said Friday. The transaction is expected to close before July.

The deal completes the second part of a share redemption begun in 2008.

The strategic decision to fully integrate our Japanese operations into Caterpillar supports our enterprise strategy focus on competing and growing our leadership in the rapidly expanding emerging markets of Asia and the Commonwealth of Independent States, Caterpillar group president Rich Lavin said. The Commonwealth of Independent States refers to former nations in the Soviet Union.

Shares of Caterpillar fell $1.15 to $112.21 in afternoon trading.