Konecranes

Konecranes and Terex Corporation have announced that their respective boards of directors have unanimously approved a definitive agreement to combine their businesses in a merger, despite a rival offer to acquire Terex by China's Zoomlion.

Konecranes and Terex have obtained antitrust clearances in India, Turkey, Ukraine, Russia and South Africa. The parties have made the merger-related HSR filing to the United States Department of Justice and are preparing to pave the way for their deal with the European Commission.

Both companies will continue to cooperate with the remaining authorities to close their reviews as quickly as possible, according to a Konecranes announcement.

The statement acknowledges, however, that some of the tax benefits initially detailed in the merger announcement may not eventuate.

Konecranes notes that all the proposed EUR32 million (USD36 million) tax and financing synergies of the deal could be eliminated because of new proposals by US regulators.

"While Terex and Konecranes are still considering the full effects of these developments, the regulations will materially impact the ability of the combined company to realise the anticipated financial and tax benefits of the merger," according to the statement.

The merger remains subject to approval by both Terex and Konecranes shareholders, regulatory approvals and other closing conditions.

Terex informed Konecranes in March it had commenced negotiations with Zoomlion Heavy Industry Science and Technology Co.

"Konecranes and Terex will continue to pursue the merger in accordance with the business combination agreement," the statement stresses, with closing of the merger now expected to occur approximately in the middle of the second half of 2016.