Zoomlion joins Terex Konecranes merger talks

Chinese construction machinery manufacturer makes buyout play for US crane-maker

Zoomlion joins Terex Konecranes merger talks
Terex Explorer 5500 crane.


In a game of company tug-of-war, Zoomlion Heavy Industry Science and Technology has made moves to acquire US-based crane-maker Terex Corporation, despite ongoing talks between the company and Finish crane-maker Konecranes.

The US company has confirmed the interest from its Chinese rival, stating it has received an unsolicited, non-binding acquisition proposal to purchase all outstanding Terex shares for $30 in cash per share.

"The proposal is conditioned on, among other things, receipt of US and Chinese regulatory approval and Zoomlion shareholder approval," Terex says.

While confirming it will do its due-diligence, it appears the company’s board favours the original deal.

"Terex previously announced that it had entered into a Business Combination Agreement with Konecranes Plc providing for a combination of Terex and Konecranes," Terex says.

"The Terex Board of Directors has not changed its recommendation of the proposed combination with Konecranes."

The other half of the original deal is also standing firm for its desired merger, releasing a statement overnight.

"The Board of Directors of Konecranes has confirmed that Konecranes will continue to pursue the merger of equals with Terex as planned," the Finish company says.

"Konecranes continues to believe that the Merger‎ represents a highly compelling opportunity for both companies and their shareholders, and stands behind and remains committed to the Merger."

The move did change things for Terex’s stock price, which jumped almost 40 per cent after the move was announced.

It currently sits at close to a third of the Zoomlion offer.

The original offer between Terex and Konecranes would see the companies become Konecranes Terex Plc, and Terex shareholders receive 0.80 Konecranes shares per Terex share.

This would mean that by midyear, the combined company would be 60 per cent owned by Terex shareholders and 40 per cent by Konecranes shareholders.

The company would be based out of Hyvinkää in Finland and Connecticut in the US.

Konecranes’ current chairman of the board would stay as chairman of Konecranes Terex and Terex’s CEO would also retain the CEO role.

The board would be split 5/4 in Terex’s favour.


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