Terex, Konecranes merger to create $10bn cranes giant
Company to be known as Konecranes Terex after ‘merger of equals’, which is expected to close in the first half of 2016
The U.S. crane maker Terex and Finland’s Konecranes have agreed an all-share merger, as they look for cost savings in a “highly competitive” global market.
The “merger of equals” is set to create Konecranes Terex, with $10 billion in revenues and earnings of around $845 million.
Current Terex shareholders would own approximately 60% of the new company, with Konecranes investors set to receive 40% under the new agreement.
The board would be composed of nine directors – five from Terex and four from Konecranes – with Terex boss Ron DeFeo as CEO and Stig Gustavson, the current chairman of Konecranes, as chair.
Ron DeFeo told Bloomberg Business that the combination creates a “more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry”.
Stig Gustavson added: “Konecranes Terex will be in an excellent position to deliver enhanced growth in revenues and margins through several strategic advantages, including significant cross-selling opportunities”.
Konecranes Terex is set to maintain “significant headquarters” at both companies’ present head offices in Connecticut, US and Hyvinkää, Finland. Shares are to be listed on the NASDAQ exchanges in both Helsinki, Finland and New York, US.
The merger is subject to regulatory and shareholder approval and is expected to close in the first half of 2016. The combined group would have some 32,000 employees worldwide, generating annual net income benefits of $119 million within three years, according to a joint statement by the two companies.
