China’s Zoomlion Heavy Industry Science and Technology Co (000157.SZ) confirmed on Wednesday it had made an offer for Terex Corp (TEX.N) that values the U.S. crane maker at about $3 billion. Zoomlion is offering $30 per share to acquire Terex, or about 47 percent premium to Terex’s Tuesday’s close. It said it was confident the deal would win regulatory approval. Terex had said in January it received an offer from Zoomlion (1157.HK), which helped pushed up the U.S. company’s shares as much as 60 percent.. Zoomlion, which produces and sells construction machinery, said it aimed to finance the offer with 40 percent of its own cash and 60 percent debt financing. “The company is confident that the merged company will be an even stronger global enterprise, which will continue to promote innovation and business growth, and create value for its customers, shareholders, employees as well as all stakeholders,” Zoomlion said in a statement to the Hong Kong stock exchange. Sources told Reuters in January the deal could be blocked by the Committee on Foreign Investment in the United States (CFIUS). Terex, a Connecticut-based crane maker, has 97 so-called priority-rated contracts with the U.S. government that could attract CFIUS scrutiny. It also provides mobile harbor cranes in ports that are seen as a critical part of U.S. infrastructure. Terex and Finnish rival Konecranes (KCR1V.HE) agreed an all-share merger in August 2015, hoping a combined $10 billion in annual revenue would help them better cope with cooling Chinese and weak European demand. Zoomlion warned in January its 2015 net profit would fall by up to 90 percent due to a slowdown in China.
Source: Reuters.comZoomlion confirms offer for U.S crane maker Terex
Industry: Engineering 2016-02-17
