Terex has received a takeover proposal from Chinese construction company, Zoomlion Heavy Industry Science and Technology, in a move that could complicate Terex’s proposed ‘merger of equals’ with Konecranes,
According to Terex, it has now entered into a confidentiality agreement with Zoomlion and is in discussions with the Chinese company over its proposal, which values US company around US$3.28 billion.
“Consistent with its fiduciary duties, the Terex board of directors, in consultation with its legal and financial advisors, is carefully reviewing the Zoomlion proposal to determine the course of action that it believes is in the best interests of Terex shareholders,” the company said in a statement.
Terex also noted that it had not changed its recommendation of the proposed merger with Konecranes.
For its part, Konecranes said in a statement that it “continues to be convinced that the merger represents a highly compelling opportunity for both companies and their shareholders.” The Finnish company also accused the stock market on undervaluing the inherent value creation potential of a merger.
Edited by Jonathan Rowland.