THE proposed sale of Terex’s Material Handling and Port Solutions (MHPS) business to Konecranes has just cleared two major hurdles, with sales completion still expected to occur in early 2017.
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The deal, worth US$820 million ($1.12 billion) to Terex along with 19.6 million Konecranes shares, has now been given approval by the European Commission should Konecranes divest its Stahl CraneSystems business.
While Konecranes has said it will start this split immediately, the US Department of Justice has granted Terex early termination of the Hart-Scott-Rodino premerger waiting period. This is part of the Hart-Scott-Rodino Act, which governs notification of larger mergers and acquisitions along with the following wait for government review.Terex CEO John Garrison the clearances by the European Commission and the US Department of Justice were “an important step towards the completion of the planned divestiture of our MHPS segment”.Earlier, Konecranes signed EUR$1.5 billion ($2.18 billion) in unsecured financingfacilities to fund the acquisition of Terex’s MHPS business.