Zoomlion Ups Bid for Terex by $1 per Share

Chinese construction equipment manufacturer Zoomlion has increased its offer for Terex Corp. to more than $3.4 billion, according to a Reuters report, in response to the Westport, Conn.-based company’s request for it to increase its acquisition offer of $30 per share.

Michael Roth

March 18, 2016

A Genie GTH1256 telehandler on the job Genie is one of Terex39s most profitable divisions — A Genie GTH-1256 telehandler on the job. Genie is one of Terex's most profitable divisions.

Chinese construction equipment manufacturer Zoomlion has increased its offer for Terex Corp. to more than $3.4 billion, according to a Reuters report, in response to the Westport, Conn.-based company’s request for it to increase its acquisition offer of $30 per share. Zoomlion raised its bid by adding a special dividend for Terex shareholders of $1 per share to its previous $30 per share cash offer.

Terex has responded to the bid, according to sources, by asking for $32.75 per share in cash as incentive to terminate its merger agreement with Finland-based Konecranes, which Terex had agreed to before Zoomlion made its initial unsolicited offer.

Zoomlion’s latest move shows additional interest from Chinese corporations to acquire United States-based assets. Terex has asked Zoomlion to raise its offer because of its belief that synergies with Konecranes in the material handling and ports businesses of the two companies would be worth more in the long term than what Zoomlion had offered.

According to the report, discussions between Terex and Zoomlion have not advanced beyond price. Zoomlion’s banks are still waiting for Terex to provide the access they require for their due diligence.

To read the Reuters story, go to: http://www.reuters.com/article/us-terex-m-a-zoomlion-idUSKCN0WH2AX

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.