Terex TA250 articulated dump truck
© Terex Trucks

Terex is a well known heavy equipment giant that is well known in the industry by many professionals. This past month, Zoomlion, a Chinese firm, placed a bid for $3.3bn (£2.5bn) to acquire this profitable investment. In partnership with Konecranes (a Finnish firm), a forty percent cash and sixty percent financing offer is in the works. The offer also outlines beneficial details that would sway all parties involved.

Terex is well known for their products that include cranes, work platforms, materials and more. Zoomlion is also very similar with their environmental equipment, construction equipment and agricultural machinery. This would be a wise investment and expansion for the brand while bringing together two different markets in two different areas of the world. Terex is currently largely focused within the United States as well as Europe, while Zoomlion resides primarily in China and the surrounding markets. If this offer goes through, Zoomlion will greatly expand its reach and become a global enterprise. The sky is the limits.

With Terex being the leader in this transaction, its important to not forget what Zoomlion brings to the table. Terex has the latest and greatest technology and manufacturing processes while Zoomlion has a great deal of production capacity and cost advantages. Why Terex would consider this opportunity is quite simple. The president and CEO of Terex, John Garrison, reports that the fourth quarter was challenging for Terex this past year. With consumers being more cautious with their dollar, goals were not met. The last three months of 2015 brought in $14.6 million which was shockingly lower than the year before, which amounted to $79.9 million.

Assistance would be needed during this transition which is why Zoomlion intends to bring on members of Terex’s international management team to help make this process smooth. With this global experience and knowledge from both sides, the transition could be simple and beneficial.