The move will "bring together complementary leaders in lifting, materials handling, and equipment servicing solutions," said Konecranes. Other advantages include increased presence in key sectors, with greater opportunity to capitalise on growth trends, particularly in industrial lifting and port solutions, said the Finnish crane manufacturer.
The new company, which had a combined 2014 revenue of $10bn, will be incorporated in Finland, with headquarters in Hyvinkää, Finland and Westport, Connecticut.
Stig Gustavson, chairman of the board of Konecranes, said: "The combination of Konecranes and Terex is a defining step in the history of both companies. With a focus on lifting and material handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenues and margins through several strategic advantages, including significant cross-selling opportunities.
"There is a common culture between the two organizations, with both companies having long histories of designing competitive and innovative solutions. Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger in the future."
Ron DeFeo, CEO at Terex, added: "This merger brings together two great businesses and through synergies provides another lever that is within our control to deliver value-creation to both the shareholders of Terex and Konecranes. We have a deep respect for Konecranes and look forward to joining forces with them to build a stronger and more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry."
