Terex Terminates Merger with Konecranes but Plans to Sell its Port Business to the Company for $1.3 Billion

The American crane and heavy equipment maker Terex Corporation said on Monday that it had agreed to terminate its merger with Konecranes, a Finnish rival, and would instead sell its material handling and port solutions business to the company for about $1.3 billion.

Terex and Konecranes announced in August that they would merge in an all-share deal, but Zoomlion of China made a competing bid in January to acquire Terex for $30 a share in cash, or about $3.3 billion. Zoomlion later raised its bid to $31 a share in March.

The latest deal with Konecranes would allow Terex to continue its discussions with Zoomlion on a sale of Terex in whole or in part. The sale to Konecranes could be terminated for a fee of $37 million if Terex and Zoomlion reach an agreement before the end of May.

For more about the Terex/Konecranes merger...