A proposed merger between Terex Corporation and Konecranes has been paused following the unsolicited $3.3bn acquisition offer for Terex from Chinese equipment giant Zoomlion.
A Terex statement said “it would be prudent to pause the integration planning activities for the time being. This will allow the Terex management team to devote its attention to improving the company’s operating results and delivering on management’s commitment to shareholders.”
The Terex Board of Directors recommendation of the merger still stands and filings are ongoing in pursuit of approvals from shareholders, antitrust and regulatory authorities necessary to complete the merger, Terex said.
Terex and Konecranes announced the merger proposal to form Konecranes Terex last August in a move that would form a company with $2.5bn in assets and some $10bn in combined global sales.
However, at a price of $30 a share the offer from Zoomlion represents a significantly higher valuing of Terex stock, and the news caused the real value of Terex shares to jump up by 37% from roughly $15 a share to $20.5 a share.
The share prices of Manitowoc and Joy Global increased following the new, indicating market scepticism over the competitiveness of the deal, while shares in Konecranes and Zoomlion fell by 8.4% and 7%, repressively, over market fears over the prospective uncertainty for both parties.
