On May 16, 2016, Konecranes announced that it has signed an agreement (the “Stock and Asset Purchase Agreement) to acquire from Terex Corporation (“Terex”) its Material Handling & Port Solutions segment ("MHPS") (the "Acquisition").

According to its terms, the Stock and Asset Purchase Agreement could be terminated by Terex prior to May 31, 2016, if it enters into, or reasonably believes that it will promptly enter into, a legally binding merger agreement with Zoomlion Heavy Industries Science & Technology Co., Ltd. (“Zoomlion”), in which case, it would pay Konecranes a termination fee of USD 37 million.

On May 27, 2016, Zoomlion announced that is has decided to terminate the negotiation in relation to the proposed acquisition of Terex. Konecranes will continue to work towards completing the Acquisition in accordance with the Stock and Asset Purchase Agreement.

“There are a number of key points that define the rationale of this deal. This Acquisition will enhance our position as a focused and global leader in service and equipment in industrial lifting and port solutions. The complementary range of MHPS equipment will give us a complete product offering. The Acquisition will significantly expand our international presence to better compete in the global markets. We will achieve critical scale in technology development and manufacturing operations. Of central importance is the fact that with MHPS we will have additional installed base for cranes. This, including the digitalization of our services, will offer broader opportunities to expand our service business and create earnings potential,” stated PanuRoutila, President and CEO, Konecranes.

The Acquisition is subject to regulatory approvals and other closing conditions, including shareholder approval at a Konecranes Extraordinary General Meeting of shareholders, and is expected to close in early 2017.