Konecranes-Terex Merger: Another Statement Issued

At the end of last week, Konecranes issued a statement clarifying information that was released into the market the day before by unnamed sources relating to the ongoing Konecranes-Terex merger process.

Konecranes stressed it is fully committed to the merger and continues to believe that the merger‎ represents a highly compelling opportunity for both companies and their shareholders. All the work streams required to complete the transaction as soon as practicable are proceeding as planned, the statement continued.

The Terex board of directors has not changed its recommendation of the merger but reports suggest it has suspended all integration work on the merger.

A Konecranes statement confirmed: “In view of the progress made in the last seven months on post-merger business integration planning, and given the challenging business environment, Konecranes and Terex determined to temporarily suspend post-merger business integration planning discussions, being only one of the merger work streams, to focus on their respective businesses and completion of the merger.”

Konecranes has issued another statement related to the Terex merger.

On August 11, 2015 Konecranes and Terex Corporation announced that their respective boards of directors had unanimously approved a definitive agreement to combine their businesses in a merger of equals.

Since then, at the end of January 2016, Terex Corporation confirmed that it had received an unsolicited, non-binding acquisition proposal from Zoomlion Heavy Industry Science and Technology Co. (Zoomlion) to acquire all of the outstanding shares of Terex for $30.00 in cash. The proposal was conditioned on, among other things, receipt of U.S. and Chinese regulatory approval and Zoomlion shareholder approval.