A Fantuzzi forklift

Terex has announced it will not proceed with its planned purchase of Italian port equipment manufacturer Fantuzzi Industries.

Terex told the US Securities and Exchange Commission (SEC) it had terminated its agreement with Fantuzzi because of delays in getting final approval and materially adverse changes.

Forkliftaction.com News reported in November Terex's concerns about a number of issues relating to the deal. Terex had asked Fantuzzi for more information (Forkliftaction.com News #388).

In a statement to the SEC, Terex says attempts to find a resolution through discussions and negotiations were not successful. "Fantuzzi failed to provide Terex with any of the additional information requested and no resolution was reached by the parties.

"On 15 December 2008, Terex advised Fantuzzi that it was terminating the Fantuzzi agreements effective immediately due to failure to obtain all necessary competition authority approvals without conditions, existence of a material adverse change, and other reasons."

Fantuzzi has advised Terex it disputes the grounds for termination and has threatened legal action. Discussions between the parties continue and the outcome is still to be determined.

Forkliftaction.com News contacted both companies for comment. Ron DeFeo, Terex chairman and chief executive officer, declined to comment and Fantuzzi did not respond.