New | China’s Zoomlion in US$3bn bid for US crane-manufacturer Terex

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Zoomlion’s offer of US$30 per share represents a 41 per cent premium to Terex’s recent closing price

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Ben Westcott

Published: 10:12am, 17 Feb 2016Updated: 11:53am, 17 Feb 2016

Chinese heavy machinery manufacturer Zoomlion said Wednesday it has reaffirmed its commitment to acquiring US construction crane maker Terex Corporation, in a deal valued at US$3 billion.

Zoomlion will offer US$30 per share for the company, or a 41 per cent premium over Terex’s current closing price of about US$21.22, the company said in an announcement to the Hong Kong Stock Exchange on Wednesday.

The Hunan-based company said it was confident the deal would receive regulatory approval from the relevant bodies.

Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd. chairman & CEO Zhan Chunxin (left) shows off a model to Hong Kong Exchanges and Clearing Ltd. chief executive Charles Li during their company listing on the main board of the SEHK. 23DEC10

“[We] believe that this proposed transaction offers strategic benefits to both companies... after the completion of the proposed transactions, [Zoomlion] and its subsidiaries will feature a more comprehensive product chain and wider product coverage,” the statement said.

Zoomlion had previously made an offer to Terex for their company, which the latter announced receipt of on January 26.

But a previous merger announced between Terex and Finnish company Konecranes in August 2015 was holding up the deal, according to a Zoomlion spokeswoman.