US-based lifting and material handling company Terex Corporation and Finnish manufacturer of cranes Konecranes Plc have decided to postpone their merger for the time being.
However, the two companies remain committed to the decision and said they will “continue to move forward with all necessary filings to achieve antitrust, regulatory and shareholder approvals that are required to complete the merger transaction”.
Although the companies did not state the reasons for postponing the merger, Terex said that this move will allow the company to improve its operating results.
Namely, the two companies announced in August 2015 that their Boards of Directors unanimously approved the merger which would form a company to be called Konecranes Terex Plc.
Under the agreement, Terex shareholders will receive 0.80 Konecranes shares for each existing Terex share.
Upon closing of the transaction, based on current fully diluted shares outstanding, Terex shareholders will own approximately 60% and Konecranes shareholders will own approximately 40% of the combined company.
The combined company is planned to be listed on Nasdaq Helsinki and New York Stock Exchange.