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Chinese takeover bid for Terex gains traction

16 Mar 16 Reports suggest that Terex shareholders are nearing the point of abandoning their support for merging with Konecranes of Finland and selling out to Zoomlion of China instead.

The boards of Terex and Konecranes agreed a merger of their two businesses in August 2015. The agreed that Terex shareholders would get 60% of the new business, to be called Konecranes Terex and Konecranes shareholders would get 40%. This deal was expected to complete by June 2016.

However, in January 2016 Zoomlion made an unsolicited offer of $30 per share for Terex.  This was rejected by Terex but not out of hand. According to news agency Reuters, Terex said that it would accept $32.75 per share.

Reuters quotes anonymous sources saying that Zoomlioon has come back with a $31 per share offer, worth more than $3.4bn. It said that certain Terex shareholders were keen to continue negotiations with the Chinese bidder.

Terex announced on 19th February that it had suspended its integration planning activities with Konecranes for the time being, although the two companies were continuing to move forward with all necessary filings to achieve antitrust, regulatory and shareholder approvals that are required to complete their merger. To date, that was the last official statement on the topic.

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