Zoomlion Heavy Industry Science and Technology Co., China's engineering machinery giant, has announced a termination of takeover negotiations with Terex Corp. [File photo]

Zoomlion Heavy Industry Science and Technology Co., China's engineering machinery giant, has announced a termination of takeover negotiations with Terex Corp.

On May 27, Zoomlion released a public notice on the website of the Hong Kong Exchange claiming that despite close negotiations, the two sides failed to enter into an agreement, and Zoomlion has therefore decided to terminate the negotiation.

In March, Zoomlion proposed a full acquisition of Terex's business at US$31 per share, but earlier this month, Terex sold its material handling and port solution services to Finnish company Konecranes.

Analysts said that the two sides' difference on the takeover price after the sale might have caused the termination of negotiations.

Zoomlion is a Chinese manufacturer of construction machinery and sanitation equipment. Italian construction equipment maker Compagnia Italiana Forme Acciaio S.p.A and British construction equipment manufacturer Powermole are subsidiaries of Zoomlion.

Terex is a lifting and material handling solutions company. According to its website, around 5 to 10 percent of its global sales revenue comes from China.

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