Terex Reaffirms Negotiations with Zoomlion While Still Moving Forward with Konecranes
Terex CEO John Garrison confirmed on a conference call with investors that the company is continuing its ongoing discussions with Zoomlion to determine whether a binding and fully financed proposal will be forthcoming from the Chinese manufacturer which offered to acquire Terex for $31 per share in cash. Garrison said Terex is seeking a proposal that provides for a high degree of closing certainty.
“Working with our financial and legal advisors we’re focusing on critical issues such as the certainty of Zoomlion’s financing, Zoomlion’s shareholder approval, government approvals and the security and amount of a reverse breakup fee,” Garrison said. “At the same time Zoomlion has continued to undertake its due diligence of Terex. Both sides are working diligently. However, I cannot commit to when this work will be completed or whether an agreement can be reached.”
Regarding the Konecranes merger, Garrison said, “We’re moving forward with all necessary filings to achieve antitrust, regulatory and shareholder approvals that are required to complete the merger transaction.”
Garrison reiterated that the Terex board has not changed its recommendation in support of the proposed combination with Konecranes.
“These are exciting, dynamic and challenging times at Terex,” Garrison said. “We have multiple M&A transactions in process. The global marketplace is very competitive. Each sale is hard fought. Industrial production in many regions is flat to down and low commodity and oil prices are impacting many markets. In this environment, it is critical that we keep our team members focused on executing our plans and delivering on our commitments to customers, shareholders and each other.”
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.