U.S. cranes and mining equipment maker Terex and Finnish rival Konecranes have agreed to an all-share merger, hoping a combined $10 billion in annual revenues will help them better cope with cooling Chinese and weak European demand.
Terex shareholders will own 60% of the enlarged company, to be called Konecranes Terex, with Konecranes' investors owning the rest, the companies said on Tuesday.
Investor Presentation: Konecranes Terex Merger
Analysts said the tie-up should produce cost savings, cross-selling opportunities and help both firms in the face of weak industrial investment and growing competition.
Konecranes Terex will be incorporated in Finland, with headquarters in Hyvinkaa, Finland and Westport, Connecticut. The transaction is structured in such a way that Terex shareholders will get 0.80 Konecranes shares for each existing Terex share.
The firms expect the deal to close in early 2016 and generate annual net income benefits of $119 million within three years. After closure, they plan to buy back up to $1.5 billion of stock.
(more on the merger of Terex and Konecranes...)
