CEO of ASP BGen Stephen Cheney Reflects Concern over Proposed Zoomlion-Terex Merger
In an article by Greg Roumeliotis of Reuters, BGen Stephen Cheney, CEO of the American Security Project, expressed concern over the proposed buyout of the US crane-company Terex. Terex Corp, which was in the process of reviewing a buyout offer from the Finnish Konecranes Abp, halted its review process on Friday after receiving a $3.3 billion acquisition offer from China’s Zoomlion. This move by the Yunan province-backed Chinese company will certainly attract scrutiny from the Committee on Foreign Investment in the United States, which must review how essential Terex Corp is to American infrastructure and national security.
“The company has huge defense industry ties,” Cheney prompted, “It is very problematic in my view.” This latest offer comes as part of a greater concerted effort by Chinese companies to acquire foreign competitors, among them seed development and agricultural companies as well as infrastructure and high tech sector firms. Just last Tuesday, Fairchild Semiconductor International Inc rejected an offer from two Chinese firms, citing a concern that the Committee on Foreign Investment would not approve the acquisition.
