Terex receives EU clearance to buy Demag Cranes AG9 August 2011
Terex has announced that the European Commission, the EU body responsible for enforcing competition law, has approved its merger with Demag Cranes AG. The purchase offer will go ahead next week.
Nearly a year since merger speculation began with rumours of an approach from Konecranes, Terex announced on 1st July, that it had achieved minimum conditions for the acquisition after securing an agreement to purchase at least 51% of shares.
After rejecting Terex’s initial offer of €41.75, shareholders with 14 million Demag Cranes’ shares agreed to sell at the price of €45.50 per share, a substantial increase over the price before rumours of the merger increased speculation.
As the deal progressed, Terex revealed it had an agreement to buy 82% of Demag Cranes AG.
Terex’s acquisition of Demag will add industrial cranes, hoists, port technology and support services to its existing segments of aerial work platforms, construction cranes, materials processing equipment, mining, and road building products.
Terex has said that the newly formed business combination will target not only the EU but also emerging markets. Commenting on the merger, Terex president and CEO Ron DeFeo said, “Demag Cranes AG’s business is highly complementary to the existing Terex business, and the combination has compelling industrial logic, with a strong footprint in Europe and emerging markets.”