China’s Zoomlion bids $3.3bn for American Terex
Chinese Machinery Manufacturer Makes $3.3 Billion Offer to Buy Terex
Chinese state-owned machinery manufacturer Zoomlion Heavy Industry Science and Technology Co Ltd submitted a proposal to buy US crane-manufacturer Terex Corporation for $3.3 billion in cash on Wednesday. The proposal comes in the middle of the planned merger between Terex and Finnish crane manufacture Konecranes PLC announced in August 2015. Zoomlion’s proposal values Terex at the premium price of $30 a share—100 percent more than Terex’s closing price on Monday—a valuation that may derail the Terex-Konecranes merger.
Terex’s board of directors is currently reviewing Zoomlion’s proposal and at the time of print has not changed its recommendation to proceed with the Terex-Konecranes merger. Meanwhile, Zoomlion announced that it has received government permission and financial support for its proposal. However, Zoomlion’s proposal might be subject under review by Committee on Foreign Investment due to Terex’s 97 priority-rated contracts with the US government.