Terex Corporation will become incorporated in Finland as it merges with a Finnish company. But officials say the construction equipment maker will retain a significant presence in Connecticut.
The marriage between Westport’s Terex and Konecranes will bring significant tax advantages; in fact it’s what’s known as an inversion deal, where a U.S. company gets to offshore its tax liabilities to a lower tax country.
The deal is also expected to yield a lot of savings as the two combine their resources, with efficiencies of some $121 million in operating costs. But officials from both companies refused to say where cuts may come if the merger is realized next year.
Terex CEO Ron DeFeo will continue in that position for the new company.
Terex makes heavy construction and mining equipment, while the Finnish company is an industrial crane maker. DeFeo told a conference call the combined businesses aim to be a world leader in industrial lifting and port equipment.
"Having this range of products and brands as one offering will yield considerable cross-selling opportunities for us, as well as clear benefits for our customers to simplify their purchasing; it truly sets us apart," DeFeo said.
Both companies have seen an erosion in their stock price in recent months, but Tuesday’s announcement saw about a 15 percent boost in shares of both.
