According to the Wall Street Journal, Terex Corporation announced Monday plans to sell its material-handling and port solutions [MHPS] business to Konecranes Oyi of Finland for $1.28 billion in cash and stock.
This new Terex plan replaces an earlier arrangement to do a full-scale merger with Konecranes. However, Terex reserves the right to terminate this latest deal with Konecranes if it reaches an agreement to sell the entire Terex company to Zoomlion Heavy Industry Science & Technology Company in China. Terex has up to May 31 to back out of the deal to sell the MHPS unit and has indicated it may do so if Zoomlion puts forward a fully financed acquisition offer by the end of May. If Terex were to pull out of the sale to Konecranes, the company will face a termination fee of $37 million, paid to Konecranes.
Zoomlion has made an informal offer of $31 a share for Terex, but Terex has said it isn't satisfied Zoomlion's financing is in order. Zoomlion has said it has support from Chinese banks but has yet to deliver a formal offer.