Terex CEO John Garrison confirmed on a conference call with investors that the company is continuing its ongoing discussions with Zoomlion to determine whether a binding and fully financed proposal will be forthcoming from the Chinese manufacturer which offered to acquire Terex for $31 per share in cash. Garrison said Terex is seeking a proposal that provides for a high degree of closing certainty.
“Working with our financial and legal advisors we’re focusing on critical issues such as the certainty of Zoomlion’s financing, Zoomlion’s shareholder approval, government approvals and the security and amount of a reverse breakup fee,” Garrison said. “At the same time Zoomlion has continued to undertake its due diligence of Terex. Both sides are working diligently. However, I cannot commit to when this work will be completed or whether an agreement can be reached.”
Regarding the Konecranes merger, Garrison said, “We’re moving forward with all necessary filings to achieve antitrust, regulatory and shareholder approvals that are required to complete the merger transaction.”
Garrison reiterated that the Terex board has not changed its recommendation in support of the proposed combination with Konecranes.
“These are exciting, dynamic and challenging times at Terex,” Garrison said. “We have multiple M&A transactions in process. The global marketplace is very competitive. Each sale is hard fought. Industrial production in many regions is flat to down and low commodity and oil prices are impacting many markets. In this environment, it is critical that we keep our team members focused on executing our plans and delivering on our commitments to customers, shareholders and each other.”
