Terex Hits “Pause” On Konecranes Merger Integration

19 February 2016

The saga of Terex Corp. just keeps getting more interesting.

Terex has announced that it and Konecranes have determined that “it would be prudent to pause the integration planning activities” between the two companies for the time being.

The move apparently brings a halt – at least temporarily – to the planned all-stock “merger of equals” between Terex and Konecranes Plc of Hyvinkää, Finland, jointly announced last August that would have created a single company, Konecranes Terex Plc. Incorporated in Finland the unified company was to have had estimated pro forma 2014 revenues $10 billion.

Terex said the pause in integration activities will allow the its management team to devote its attention to improving Terex’s operating results and delivering on management’s commitment to shareholders.

But Reuters has reported that the pause may also be an indication that the company is seriously weighing the unsolicited $3.3 billion acquisition bid made in January by China’s Zoomlion. Just days after the announcement of the bid, Zoomlion announced that its net profit projections for 2015 would be off by 90% because of slow market conditions and currency issues.

Terex said its board of directors has not changed its recommendation of the Konecranes merger and that the two companies continue to move forward with all necessary filings to achieve antitrust, regulatory and shareholder approvals that are required to complete the merger transaction, which was expected to close during the first half of 2016.

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