The minimum acceptance level of 51% for the voluntary public tender offer by Terex Industrial Holding to Demag Cranes shareholders has been exceeded.
Terex said that preliminary information indicates that the offer was accepted for a total of about 67% (at least 14 million shares) of Demag Cranes by the end of the acceptance period on 30 June. Completion of the offer remains subject to several other conditions, primarily the merger control clearance by the European Commission.
Ronald DeFeo, Terex chairman and chief executive officer, said, "We are pleased with the high level of support for this transaction from the shareholders and management of Demag Cranes. With the addition of Demag Cranes to the Terex Group, we will add a new business segment with world-class products in industrial cranes/hoists and port technology. The success of our offer demonstrates the confidence in the compelling industrial rationale of this deal and the growth opportunities for both companies."
Terex Cranes and Demag Cranes combined would have produced revenue of about US$5.8 billion on 2010 figures. Terex Industrial Holding offered Euro 45.50 per share.