Chinese firm makes offer for Terex
Terex has agreed to merger with Finnish company
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George C. Ford
Terex Corp., which has engineering employees in Cedar Rapids and crane manufacturing operations in Waverly, has received an unsolicited takeover bid from a Chinese company.
Zoomlion Heavy Industry Science and Technology has offered $30 per share for the crane and mining equipment maker. The proposal would value the deal at about $3.28 billion.
Westport, Conn.-based Terex and Finland’s Konecranes Oyj agreed to an all share merger in August that would create a company with a combined $10 billion in annual revenue.
In a statement, Terex said it is reviewing Zoomlion’s proposal and “will have no further comment until the board has completed its review.”
Konecranes on Wednesday said it plans to push ahead with a merger with Terex.
In comments to Reuters, Konecranes Chairman Stig Gustavson questioned how Zoomlion would finance a transaction and whether it would get a deal with Terex approved by U.S. authorities.
“This is why the market is not pricing the approach in full,” Gustavson said.
Zoomlion on Wednesday said in a statement that it had not signed any binding agreement with Terex and was unable to confirm whether a deal would go ahead.
Under the terms of their agreement, Terex would have to pay about $40 million to Konecranes if it walks away from the deal.
Terex manufactures cranes and equipment for miners and construction companies. Konecranes is more focused on cranes for factories, shipyards and ports.
The Cedar Rapids City Council in mid-December authorized the city to negotiate a development agreement including tax breaks with the owner of The Fountains at Edgewood Road NE and Blairs Ferry Road NE to lease office space to Terex in a new building. The company plans to move about 50 employees from 909 17th St. NE to the office and retail center.
Terex purchased Cedarapids Inc. in Cedar Rapids in 1999. At one time, Cedarapids employed some 900 employees in the Cedar Rapids, including 640 production workers.