UPDATE Westport-based Terex Corp. has agreed to combine with Finnish competitor Konecranes Oyj to create a crane and materials-handling supplier with a combined $10 billion in sales, it was announced early today.
The all-stock merger of equals will result in shareholders of Terex owning 60 percent of a new enlarged group called Konecranes Terex Plc, the companies said in statement. They said the merged company will maintain “significant headquarters” in Westport and Hyvinkää, Finland. 
Ronald DeFeo: will be CEO of combined company. File photo
Terex has declined 25 percent this year, leaving the company with a market value of $2.37 billion. The stock climbed 11 percent in after-hours trading Monday to $24.39. Konecranes has climbed 18 percent this year.
Terex, which had 2014 revenue of $7.3 billion and net income of $319 million, makes heavy equipment for industries including construction, mining, shipping and refining. Its headquarters is the Nyala Farms office complex on Greens Farms Road. Ronald DeFeo, Terex chairman and CEO, is a Westport resident.
“This merger brings together two great businesses and through synergies provides another lever that is within our control to deliver value-creation to both the shareholders of Terex and Konecranes,” DeFeo said in the merger announcement.
“We have a deep respect for Konecranes and look forward to joining forces with them to build a stronger and more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry.”
“Konecranes Terex will be in an excellent position to deliver enhanced growth in revenues and margins through several strategic advantages, including significant cross-selling opportunities,” Konecranes Chairman Stig Gustavson said.
Terex shareholders will get 0.80 Konecranes shares for each existing Terex share.
The announcement said upon close of the transaction, the combined company will appoint nine directors comprised of five Terex directors and four Konecranes directors.
“The Konecranes chairman and the Terex CEO will become, respectively, the chairman and the CEO of the combined company at closing,” the announcement said.
“The combined company will maintain significant headquarters in Westport, Connecticut USA and Hyvinkää, Finland.
“Following completion of the transaction, Konecranes Terex Plc is expected to have approximately 32,000 employees worldwide. The combined company is planned to be listed on Nasdaq Helsinki and New York Stock Exchange.”
The announcement said the new company plans to authorize a $1.5 billion share repurchase and initial annual dividend of approximately $1.15 per share.
The companies said the transaction is subject to approval by Terex shareholders, by Konecranes shareholders, regulatory approvals and customary closing conditions. Closing is expected to occur during the first half of 2016.
The combined company will generate annual net income benefits of $119 million within three years, the companies said.
