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Terex Cancels Merger With Konecranes, But Strikes a Different Deal
05/16/2016 - U.S.-based Terex Corp. has halted its planned merger with Finland’s Konecranes Oyj, but will instead sell its materials handling and port solutions business to Konecranes in a deal valued at approximately US$1.28 billion, according to reports.
The move allows Terex to pursue talks with China’s Zoomlion Heavy Industries Science & Technology Co. Ltd., which submitted a competing offer for the company.
The Wall Street Journal reported that the original Konecranes offer lost its luster in comparison to the Zoomlion’s all-cash offer -- it was higher than Terex’s recent stockprice. And, The Journal said, new U.S. rules related to inversion deals negated a significant portion of the cost savings the deal was supposed to create.
According to BloombergBusiness, a Terex-Zoomlion merger that doesn't include the materials handling and port solutions business would be less likely to be rejected by U.S. regulators. However, Zoomlion still has option of pursuing a full takeover of Terex, Bloomberg reported.
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