The deal replaces plans for a full merger of the two companies, and may be terminated if Terex agrees to be acquired by Zoomlion.
Dockside lifting, and more recently materials handling, products have long been an element of Terex’s business. Terex acquired reach stacker manufacturer PPM in 1995. In 2009, it bought Fantuzzi Reggiane as the Italian ship-to-shore company struggled with debts, and following an initial bid by Konecranes. In 2011, it acquired a majority stake in Demag Cranes AG, owner of Demag material handling cranes and Gottwald harbour mobile cranes. Just a few weeks ago, it bought the terminal tractors business of CVS Ferrari from Manitex.
Terex and Konecranes have been working on a merger since late 2015. Zoomlion stepped in the middle of the deal with a bid to acquire Terex outright.
The new deal, Terex explained in a presentation, would preserve the strategic logic and synergies of the planned merger. It would allow Terex to participate in any upside for the MHPS business. At the same time, if Zoomlion pushes on with its acquisition plans, there is an option to cancel the MHPS sale on payment of a termination fee, allowing the Chinese bidder to acquire the entire current Terex business.
