Flashback: announcement of the merger

Konecranes has agreed to buy Terex Corp's crane business for ports and factories for EUR1.1 billion (USD1.3 billion), ending plans for a full merger and leaving the door open for Terex to continue negotiations with a rival bidder.

Konecranes and Terex agreed to a merger last year, but in January, Terex received a non-binding cash bid from China's Zoomlion Heavy Industries Science & Technology Co.

Terex says the latest deal "provides Terex with the ability to continue to pursue discussions with Zoomlion".

Under the new Konecranes deal, Terex will become a 25% shareholder in the Finnish company.

Konecranes says the Material Handling & Port Solutions business was what had attracted it to Terex and it expects significant synergies from the purchase.

"The Chinese intervention, of course, changed the picture, but if this deal goes through, I don't think it is any worse than the initial one," chief executive Panu Routila told reporters.

He said the deal would improve Konecranes' growth prospects, especially in its services business as it could help it to win larger outsourcing deals from customers.

The MHPS unit had sales of about EUR1.39 billion (USD1.57 billion) last year, compared with Konecranes' revenue of EUR2.13 billion (USD2.41 billion).

Under the new deal, Terex has the right to terminate before the end of the month for a fee of USD37 million, if the US company and Zoomlion agree on a sale of Terex as a whole.

Zoomlion has declined to comment on the deal or its talks with Terex.