Global manufacturer Bradken has agreed to a takeover bid by Japan's Hitachi Construction Machinery for $688.5 million in a deal analysts say may indicate the worst of the mining downturn has passed.

The takeover is priced at $3.25 per share, which is a 34 per cent premium to Bradken's last share price close.

It values the business at a total of $976.1 million, given the debt Bradken will offload to Hitachi with the transfer of ownership.

"Bradken's staff have worked very hard to reposition the business for success following the downturn in mining," said Paul Zuckermann, chief executive of Bradken.

"[We] believe its businesses are complementary with our mining equipment services business," said Yuichi Tsujimoto, president at HCM.

"Both companies leveraging each other's global network will enable us to strengthen our combined businesses and enhance our earnings."

The deal is still subject to shareholder approval, and each Bradken director intends to accept the deal. Bradken's head office will remain in Newcastle.

Ric Spooner, an analyst at CMC Markets, told ABC News that the resources sector appears to have bottomed.

"The feeling is the worst of the downturn in mining projects is likely to be behind us," he said.

"Whilst it may be fairly tough going in terms of a lot of growth in the next year or two ... particularly given the big pullback in capital investment we've seen over the past couple of years.

"Ultimately we're going to arrive at a situation where some metals and oil and other stocks, where the industry is going to have to invest more heavily again to meet demand growth in a long term view."

In August, Bradken posted another full-year loss of $196 million as the impact of the resources downturn continued to take its toll.

Shares in Bradken soared 31 per cent to $3.19 on news of the deal, its highest since February 2015.

"The nearer term outlook is one of fairly on going consolidation but beyond that, for investors with a longer term profile, there is a prospect of revenue growth again, though investors will want to ask if that's already reflected in the share price," said Mr Spooner.