Terex, Konecranes Demolish Merger, Build Asset Deal

Cranes makers Terex (TEX) and Konecranes (KNCRY) , of Finland, have torn up a 1.8 billion ($2.2 billion) merger agreement struck last August in favor of an asset sale which leaves the door open for China's Zoomlion to bid for the Westport, Conn. company.

The new arrangement involves the sale of Terex's material handling and port solutions business to Konecranes for $1.3 billion, the U.S. company said. The price includes $820 million in cash and new shares equivalent to a 25% Konecranes stake, accompanied by the right for Terex to nominate two Konecranes directors.

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The deal between the two companies also allows...