Konecranes Oyj and Terex Corp have mutually terminated their plans for a merger.
The announcement, made by Terex Corp, clears the path for Chinese manufacturer Zoomlion Heavy Industry Science and Technology to move forward with its plans to buy the US crane manufacturer.
Along with the termination of the merger, it is reported that Konecranes has agreed to acquire Terex’s material handling and ports solutions (MHPS) division for US$ 1.3 billion.
The deal would see Finnish-based Konecranes pay US$ 820 million in cash and US$ 19.6 million in shares.
In a statement, Konecranes CEO Panu Routila said, “This acquisition will prove crucial to improving our position.”
Following the transaction, Terex would own approximately 25% of Konecranes.
Terex is now expected to continue negotiations with Zoomlion over the potential takeover.
Zoomlion’s original US$ 30 a share offer for Terex, made in January, was increased in March to US$ 31 a share.
It has been reported that the deal is less likely to face opposition if the MHPS division of the company is not part of the acquisition, although neither Terex nor Zoomlion have made comment on this aspect of the acquisition.