Fantuzzi purchase may not go ahead
Thursday, 27 November 2008
Westport, CT, United States
Terex Corporation has been given the go-ahead by the European Commission (EC) to finalise its acquisition of Italian port equipment manufacturer Fantuzzi Industries. However, the sale may not proceed after Terex announced concerns about a "material adverse change".
In a statement to the US Securities Exchange Commission, Terex says it has informed Fantuzzi "it believes that a material adverse change may exist with respect to the Fantuzzi business or other grounds exist which may preclude completion of this acquisition".
The EC approved the deal on November 19, saying it found the purchase would not impede competition in the European Union. "The commission's examination of the proposed transaction showed that the horizontal overlap between the parties' activities is limited and that they would continue to face several strong, effective competitors with significant market shares. The commission therefore concluded that the proposed acquisition would not raise competition concerns."
Terex announced in August it had reached an agreement to acquire Fantuzzi Industries for approximately EUR215 million (USD318 million). The transaction was subject to the EC's approval (Forkliftaction.com News #374)
Terex has asked Fantuzzi for more information so it can clarify if there has been any change to the Italian manufacturer's business and to the conditions that must be met for the purchase to go ahead.
Fantuzzi has issued a statement saying it is 'extremely surprised' by Terex's announcement.