Zoomlion chairman Zhan Chunxin said: “Although the parties to the transaction have made their joint efforts to closely negotiate on the proposed transaction recently, no agreement can be reached on the crucial terms. The company therefore decided to terminate the negotiation in relation to the proposed acquisition of Terex.”
The news means that Konecranes of Finland is now cleared to proceed with its $1.3bn acquisition of Terex’s Material Handling & Port Solutions (MHPS) segment. That sale agreement, announced on 16th May, had a clause enabling Terex to pull out if Zoomlion made a bid for the whole corporation.
Konecranes’ acquisition is subject to regulatory approvals and other closing conditions, including shareholder approval, and is expected to close in early 2017.
Konecranes was initially pitching to take over all of Terex, even though Terex's construction-related businesses are outside of Konecranes' sphere of activities. The two companies agreed merger terms in August 2015. Konecranes then pulled back after Zoomlion's intervention in January 2016.
With revenues of $4.3bn, Zoomlion Heavy Industry Science and Technology Co Ltd is China's second biggest manufacturer of construction machinery, after Sany.
Terex Cranes president Ken Lousberg said: "We are pleased that this announcement brings several months of uncertainty to an end for our customers, our team members and our shareholders. With this uncertainty behind us, the Terex team can focus our full efforts on serving our customers. The favourable impact of the MHPS sale will enhance our financial position, enabling us to invest in new products and services to serve you even better in the future."
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