Terex Sells Unit To Konecranes, Zoomlion Next?

16 May 2016

Terex Corp., Westport, Conn., and Finland’s Konecranes have entered into an agreement to sell Terex’s Material Handling & Port Solutions (MHPS) business to Konecranes for $1.3 billion.  The sale, which includes $820 million in cash; and 19.6 million new shares of Konecranes equalling 25% stake in Konecranes,  also mutually ends the Terex and Konecranes merger agreement.  The deal, according to most analysts, also paves the way for China’s Zoomlion to acquire the remainder of Terex.

To that end, Terex said it is ready to continue discussions with Zoomlion to acquire Terex (with or without MHPS).  Terex added has the right to terminate the MHPS sale on or before May 31, 2016 if Terex agrees with Zoomlion Heavy Industries Science & Technology Co., Ltd. on a sale of Terex as a whole.

Terex said the sale of MHPS preserves the strategic logic and synergies of the “merger of equals” and creates a global leader in industrial lifting & port solutions.  On the financial side, Terex said the sale generates significant value creation through realization of operational synergies.  It also enables Terex to participate in the economic upside of the combined business and allows Terex to benefit from Konecranes dividends, while locking in the benefits of MHPS sale while continuing discussions with Zoomlion.

STAY CONNECTED



Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.

Sign up

POWER SOURCING GUIDE

The trusted reference and buyer’s guide for 83 years

The original “desktop search engine,” guiding nearly 10,000 users in more than 90 countries it is the primary reference for specifications and details on all the components that go into engine systems.

Visit Now

CONNECT WITH THE TEAM
Becky Schultz Vice President of Content Tel: +1 480 408 9774 E-mail: [email protected]
Julian Buckley Editor Tel: +44 (0) 1892 784088 E-mail: [email protected]
Chad Elmore Managing Editor Tel: +1 262 754 4114 E-mail: [email protected]
Josh Kunz Power Progress Brand Manager Tel: +1 414 379 2672 E-mail: [email protected]
Roberta Prandi Power Progress International Brand Manager Tel: +39 334 6538183 E-mail: [email protected]
CONNECT WITH SOCIAL MEDIA