Terex and Cat Deal Scuttled

Terex Corporation today announced it has terminated discussions with Caterpillar regarding the sale of Terex's mining truck business to Caterpillar. The two companies could not reach a satisfactory financial deal, said Ronald M. DeFeo, Terex's Chairman and Chief Executive Officer. Said DeFeo: "We were unable to conclude this deal because of a difference in value. The complexity of this transaction,

Terex Corporation today announced it has terminated discussions with Caterpillar regarding the sale of Terex's mining truck business to Caterpillar. The two companies could not reach a satisfactory financial deal, said Ronald M. DeFeo, Terex's Chairman and Chief Executive Officer.

Said DeFeo: "We were unable to conclude this deal because of a difference in value. The complexity of this transaction, coupled with a need to sell various distribution entities to third party Caterpillar dealers, shifted too much of the risk to Terex shareholders, and I felt this outweighed the strategic logic of the transaction."

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish