The European Commission has granted its approval to Finnish manufacturer of cranes Konecranes Plc for its pending acquisition of US-based Terex Corporation’s Material Handling & Port Solutions (MHPS) business.
Konecranes has launched the divestiture process of its STAHL CraneSystems business, as the approval is conditional on a commitment to divest the segment.
Furthermore, Konecranes and Terex are not allowed to close the MHPS acquisition until the commission has approved the buyer of the STAHL CraneSystems.
“The divestment of STAHL CraneSystems will not affect the industrial logic behind the MHPS acquisition. The targeted operational synergies of EUR 140 million p.a. within three years from closing of the MHPS acquisition remain materially intact,” Konecranes President & CEO Panu Routila said.
Just last week, Konecranes signed EUR 1.5 billion (USD 1.6 billion) unsecured financing facilities to fund the proposed acquisition. The committed credit facility includes a syndicated EUR 300 million term loan with a tenor of three years, EUR 600 million amortizing term loan with a tenor of five years and EUR 400 million revolving credit facility with a tenor of five years, alongside a EUR 200 million bridge term loan facility.
The acquisition is subject to regulatory approvals and other closing conditions, and is expected to close in early 2017, Konecranes earlier said.
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