Shares of Terex Corp. plunged 18% in premarket trade Friday, after the maker of lifting and material handling products said merger discussions with Zoomlion Heavy Industry Science and Technology Co. have been terminated. The company said it will now proceed with the sale of its Material Handling and Port Solutions (MHPS) business to Konecranes, for $1.3 billion. The deal is expected to close in January 2017. "Unfortunately, after many months of discussions, Zoomlion was unable to provide a fully financed, binding proposal for the purchase of Terex with or without MHPS," said Terex Chairman David Sachs. "This ends the prolonged period of uncertainty that this process has brought to Terex and its customers, team members and shareholders." Terex's stock, which is on track to open at a four-month low, had soared 32% year to date through Thursday, while the S&P 500 has gained 2.3%.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.