UPDATED-On May 27, 2016, one of the world’s leading construction equipment manufacturers, Zoomlion Group, announced that the company had decided to terminate negotiations of its proposed acquisition of Terex. The value of the discontinued transaction is said to be at least $3.4 billion. The news resulted in much speculation on the market, especially in the western world.
“The only reason we terminated the negotiation with Terex was the price,” said Zoomlion Group president Changjun Sun. However, regardless of Mr. Sun’s statements, many western reporters and analysts believe this is a sign that Chinese capital is receding on the international M&A market. Of the $100 billion mainland China companies spent on overseas investments in 2015, approximately $55 billion went on M&A transactions.