It seems Chinese industrial giant Zoomlion has an appetite for industrial business with the company making an unsolicited US$3.3 billion bid for US crane and construction equipment business Terex.
The offer has caused confusion around a proposed merger already underway between Terex and Finland’s Konecranes - a deal that would create a US$5.7 billion company.
Zoomlion is China’s second biggest maker of construction equipment and is keen to expand its international presence as the Chinese market dries up with the slowing economy.
The Zoomlion share price has dropped on news of the the offer and the company is reportedly carrying debt of 43 times earnings in the year ending September 30, 2015. It was reported to have debt of just 7.4 times earnings at the end of December 2014.
Terex board has continued to recommend the merger with Konecranes proceed and investors disregard the Zoomlion offer of US$30 per share. Terex shares jumped 37 per cent to close at $20.50 a share after the Zoomlion offer was announced
It is the first time a Chinese construction equipment company has openly tried to buy a US counterpart.
The company debut a range of garish green tractors to 150 kW at Agritechnica 2015 and is desperate to penetrate North American agriculture and construction markets.