Amid a more stringent competition and weak European and Chinese markets, U.S. cranes and heavy equipment manufacturer Terex and its Finnish competitor Konecranes have recently agreed to a $10 billion all-share merger, Reuters reported on Tuesday, August 11.

According to the deal, Terex investors will own 60% of the combined company while shareholders from Konecranes will own the rest of the company. The enlarged entity, which will be called Konecranes Terex, will be based in Hyvinkaa, Finland, as well as Westport, Connecticut.

The two companies said the deal would help them save costs and aim for cross-selling amid market challenges. They also hope that the move will generate $119 million in annual net income benefits three years after its completion.

The merger is expected to end early next year.

Mergers such as this are strategic – especially when dealing with market challenges. At Arenson Law Group, PC, we guide businesses in Cedar Rapids when pursuing such transactions. Call us at (319) 363-8199 for assistance today.