The Finnish manufacturer of cranes Konecranes Plc could soon complete the acquisition of Terex Corporation’s Material Handling & Port Solutions (MHPS) segment as China’s Zoomlion Heavy Industries Science & Technology decided to terminate its merger plans with Terex.
In mid-May, Konecranes and Terex sealed a deal for the sale of the MHPS segment and decided to end their previous merger plans.
However, as Terex was in merger talks with Zoomlion, the company could have terminated its deal to sell MHPS prior to May 31, 2016, if it enters into, or reasonably believes that it will promptly enter into, a legally binding merger agreement.
The acquisition is subject to regulatory approvals and other closing conditions, and is expected to close in early 2017.
Valued at EUR 1.13 billion (USD 1.28 billion), the MHPS acquisition would improve Konecranes’ position in the Industrial Lifting & Port Solutions market, according to the company.
“Of central importance is the fact that with MHPS we will have additional installed base for cranes. This, including the digitalization of our services, will offer broader opportunities to expand our service business and create earnings potential,” Panu Routila, President and CEO, Konecranes, said.