Terex (TEX) to Merge With Finland’s Konecranes

The merger will finish in early 2016

Terex (TEX) and Konecranes (KNCRF), both crane makers, are going to merge to become a new company named “Konecranes Terex.”

Source: ©iStock.com/Studio-54-foto

The merging of Terex and Konecranes will be an all-stock one that will leave TEX shareholders owning of 60% of the company and KNCRF shareholders owning the remaining 40%. The two companies hope the merger will help them save costs and better compete with rivals, reports Reuters.

The Terex and Konecranes merger is expected to be completed in early 2016. TEX shareholders will get 0.8 shares from the combined company for each single TEX share they own. Following the merger, the companies are planning a $1.5-billion buyback of stock, Reuters notes.

“The combined company will benefit from increased scale as the industry has become more competitive over the last decade with low-cost emerging market players entering the scene,”  Stephen Volkmann, a Jefferies analyst, told Bloomberg.

TEX shares were up 22% and KNCRF shares were up 4% as of Noon Tuesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/08/terex-konecranes-tex-kncrf/.

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