Ausdrill has announced a Heads of Agreement with Best Tractor Parts Group for a full takeover of the tractor company.
The two are currently negotiating the terms of agreement regarding the full acquisition of Best Tractor.
The acquisition was originally announced in late May, after the AFR's Street Talk section broke the news, forcing Audrill to confirm it was in talks.
While Ausdrill has not yet put a potential dollar figure on its takeover, it says that it is arranging appropriate financing.
Best Tractor Parts business includes the supply of refurbished earthmoving parts, plant hire and rental, specialised mining support vehicles, and earthmoving equipment sales.
No deadline for negotiations has been set, with Ausdrill stating it "will update the market once binding agreements are entered into, or if any other material developments arise".
Late last year Ausdrill announced its intention to establish a new underground mining division.