US cargo handling specialist, Terex Corporation, has announced that it is putting on hold its merger with Finnish crane manufacturer Konecranes amid speculation that it will instead accept a buy out from Chinese manufacturer Zoomlion Heavy Industry Science & Technology Co. Ltd.
In a statement issued prior to news of the takeover bid, Terex had originally cited focusing on the company’s operating results and delivering on commitments to shareholders as the reason for placing the merger on hold.
Zoomlion has offered $30.00 per share in cash for Terex versus the Konecrane offer of 0.8 share for each Terex share. Terex shares are currently trading at just under $23.00 a share whilst Konecranes shares are currently $22.23, fuelling conjecture that the Zoomlion bid provides an attractive alternative to the Konecranes proposal.
The Terex board of directors has not changed its recommendation of the merger but has entered into a confidentiality agreement with Zoomlion and is reviewing the proposal to determine what is in the best interests of Terex shareholders.
However, concerns have been raised that such a deal could be blocked by the US on national security grounds and concerns regarding Chinese investment in US business.
