China-based Zoomlion may have ruffled some feathers when it offered to buy Terex Corp. for roughly twice its share price, but according to sources with Terex the long-planned merger with Finland-based Konecrane is still moving along.
“We have had a Konecrane-Terex merger that was announced four or five months now,” says David Rinas, director of sales and marketing for Terex Construction, a unit of Terex Corp. “And then, unexpectedly, a week and a half ago, we received an unsolicited offer from Zoomlion, and it’s substantial and real offer, so we formed a committee of the board to enter into further discussions with Zoomlion.”
The offer by Zoomlion, to purchase Terex for the equivalent of $30 a share when it was trading roughly at $15 might seem like an odd fit. There is much overlap in the two companies offerings, Rinas told ENR, gesturing to the mixer trucks at Terex’s booth at World of Concrete. “They have a concrete-mixing line in China, in addition to lots of various construction equipment.” Zoomlion is the second-largest equipment maker in China, but it has had mixed success in exporting its equipment to global markets such as the United States.
But despite the real offer from Zoomlion, Rinas says that Terex’s merger process with Konecrane is still on schedule. “Konecrane and Terex have dedicated people who are on integration team to work through the best ways and procedures to merge the two companies by hopefully early summer, according to the timetable.”