Chinese heavy equipment maker Zoomlion says it's abandoning its takeover bid for U.S. crane maker Terex because it failed to reach a deal after months of talks.
HONG KONG (AP) — Chinese heavy equipment maker Zoomlion says it's abandoning its takeover bid for U.S. crane maker Terex because it failed to reach a deal after months of talks.
Zoomlion, which made its unsolicited offer in late January, said in a filing Friday to the Hong Kong stock exchange that "no agreement can be made on the crucial terms" so it decided to "terminate" its offer.
The company added that both sides had made "joint efforts to closely negotiate" on the proposal that valued Terex at $3.3 billion.
The announcement comes days after Westport, Connecticut-based Terex said it was pulling out of a proposed merger with Konecranes.
Terex Cranes President Ken Lousberg issued the following statement:
"We would like to inform you that our discussions with Zoomlion Heavy Industry Science and Technology Co. regarding the potential purchase of Terex Corporation have been terminated. Our recently announced sale of our Material Handling and Port Solutions business segment to Konecranes is proceeding as planned, subject to regulatory and Konecranes shareholder approval. "
"We are pleased that this announcement brings several months of uncertainty to an end for our customers, our team members and our shareholders. With this uncertainty behind us, the Terex team can focus our full efforts on serving our customers. The favorable impact of the MHPS sale will enhance our financial position, enabling us to invest in new products and services to serve you even better in the future."
"We thank you for your trust in the past, especially during these uncertain times, and we look forward to continuing to serve you even better in the future."
Further details on the announcement are available at www.terex.com/en/investor-relations .