25.02.2016

Terex pushes Zoomlion for more

Terex has told Zoomlion that it will need to improve its $3.3 billion offer if it is to drop its merger plans with Finland's Konecranes.

Officially Terex has said that it is continuing to review Zoomlion's proposal in order to determine the course of action that is in the best interest of its shareholders, and that the process will take time.

We are reliably informed however that Terex has made price an issue,without specifying how much it would consider to be appropriate. At the same time there are concerns that the United States government could block any deal. due to the strategic contracts that Terex has with the U.S. military and ports. The company has over 90 priority rated contracts which could attract scrutiny from the Committee on Foreign Investment in the United States, although they only form a small portion of the company’s business.

Last week, representative Duncan Hunter, a member of the House Committee on Armed Services, raised concerns about the deal in a letter to treasury secretary Jack Lew, citing Zoomlions dealings with China's millitary.