Terex boss welcomes end to Zoomlion takeover talks
The termination of Zoomlion’s potential purchase of Terex Corporation will bring several months of uncertainty to an end, according to Ken Lousberg, president of Terex Cranes
The breakdown of discussions over Zoomlion’s potential purchase of Terex Corporation has been welcomed by Ken Lousberg, president of Terex Cranes.
In a statement issued to Terex customers, Lousberg said he was pleased that the news would bring “several months of uncertainty to an end”.
China-headquartered Zoomlion announced that it had decided to end talks over its proposed $3.3bn acquisition of US-based Terex on 27 May, 2016.
Confirming the news, Lousberg stated: “We would like to inform you that our discussion with Zoomlion Heavy Industry Science and Technology Co, regarding the potential purchase of Terex Corporation, have been terminated.
“We are pleased that this announcement brings several months of uncertainty to an end for our customers, our team members, and our shareholders. With this uncertainty behind us, the Terex team can focus our full efforts on serving our customers.”
The Terex Cranes president also noted that the recently announced sale of Terex’s Material Handling and Port Solutions (MHPS) business to Konecranes would have a favourable impact on his company’s financial position.
He said that the MHPS deal is “proceeding as planned, subject to regulatory and Konecranes shareholder approval. The sale, he added, will enable Terex to invest in new products and services.
The statement issued by Zoomlion in relation to the cancellation of takeover discussions read: “Although the parties to the transaction have made their joint efforts to closely negotiate on the proposed transaction recently, no agreement can be reached on the crucial terms. The company therefore decided to terminate the negotiation in relation to the proposed acquisition of Terex.”