Congressman Expresses Concern Over Potential Terex, Zoomlion Deal

U.S. member of Congress Duncan Hunter raised concerns about a possible Zoomlion-Terex deal in a letter to U.S. Treasury Secretary Jacob Lew.

📅   Fri February 19, 2016 - National Edition


Reuters is reporting that China's Zoomlion Heavy Industry Science and Technology Co Ltd confirmed on Wednesday it had made an offer for U.S. crane maker Terex Corp, a proposal that was opposed by at least one U.S. congressman on national security concerns
Reuters is reporting that China's Zoomlion Heavy Industry Science and Technology Co Ltd confirmed on Wednesday it had made an offer for U.S. crane maker Terex Corp, a proposal that was opposed by at least one U.S. congressman on national security concerns

Reuters is reporting that China's Zoomlion Heavy Industry Science and Technology Co Ltd confirmed on Wednesday it had made an offer for U.S. crane maker Terex Corp, a proposal that was opposed by at least one U.S. congressman on national security concerns.

Terex said it continued to recommended an offer struck with Finnish rival Konecranes in August and that it was in talks with Zoomlion, whose offer the U.S. company had made public on Jan. 26.

U.S. member of Congress Duncan Hunter raised concerns about a possible Zoomlion-Terex deal in a letter to U.S. Treasury Secretary Jacob Lew, citing the Chinese company's longtime association with China People's Liberation Army.

"The fact that a leading PLA supplier is seeking to purchase an American company that provides critical infrastructure equipment to a number of government agencies ... demands that the agreement undergo thorough scrutiny," Hunter said.

Terex shares rose as much as 8 percent to $22.08 on Wednesday. But they stayed well below Zoomlion's offer of $30 – a price the stock has not hit since November 2014 – indicating investors do not expect the deal to go through.

Zoomlion, a construction machinery maker, and Konecranes have both bid for Terex for the same reason – to help them better cope with cooling Chinese and weak European demand.

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Update: Business Insider is reporting that Terex has halted all work on its integration with Finland's Konecranes. For the full story,click here.