Konecranes' possible cancellation of merger with Terex may not be negative - Arvopaperi
The cancellation of the merger between the Finnish crane equipment supplier Konecranes and the Connecticut-based Terex may not be a negative for Konecranes, according to Arvopaperi.
The Finnish-language article said that there were some analysts that think it could be better for Konecranes if the merger was cancelled.
As reported, Konecranes announced in February it had temporarily suspended merger discussions with the Terex, but the merger had not collapsed,
The publication cited a fund manager Anders Oldenburg who had said that the risk level of Konecranes would be lower if the deal was cancelled. Large fusion requires 3-4 years from the management to focus.
In addition, the merger seems strange, the paper added, in that either companies had been the driving force behind it.
Oldenburg said that Konecranes’ position in the market would be excellent if it continued to operate alone without Terex. Konecranes’ strengths of service and technical know-how will not disappear if it does not merge with Terex.
Terex’s performance is rather weak and it seems to be weakening, which means Konecranes’ may not get the synergies it was looking for from the merger, according to Arvopaperi.
Handelsbanken had previously suggested the best case scenario for Konecranes in that Chinese company Zoomlion could fund the acquisition of Terex by selling its crane equipment business to Konecranes, the item noted. There has press reports claiming Terex has ceased negotiations with Konecranes due to a rival bid from Zoomlion.
Arvopaperi