New Delhi: Fair trade regulator Competition Commission of India (CCI) on Wednesday approved US cranes and mining equipment maker Terex's merger with Finland-based Konecranes, which will create a $10-billion entity.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
Both Terex and Konecranes have substantial size of operations in India. While Konecranes has three manufacturing units in the country - Hosur in Tamil Nadu, Pune and Greater Noida, Terex has its India facility at Jejuri in Maharashtra.
In a tweet, CCI said, "...approves merger of Konecranes Plc and Terex Corporation."
After the deal closes, the combined entity will be known as Konecranes Terex Plc, in which Terex shareholders will have 60 per cent stake and 40 per cent by Konecranes' shareholders.
The company said that the deal is expected to close in the first half of 2016.
The combined company is planned to be listed on Nasdaq Helsinki and New York Stock Exchange.
"The transaction is expected to be accretive to both companies' shareholders in the first full year after closing," a joint statement by the companies had said, while announcing the deal in August 2015.
"The combination will bring together complementary leaders in lifting, materials handling, and equipment servicing solutions," it added.
Upon closing of the transaction, the combined company will have Board of Directors comprising nine members, of which five directors will be nominated by Terex and four directors by Konecranes.
As per the deal, Konecranes' current Chairman of the Board will become Konecranes Terex's Chairman and the Terex CEO will become Konecranes Terex' CEO.
The combined entity will maintain headquarters in Hyvinkaa, Finland as well as Westport, Connecticut, US.
The combined company is expected to have about 32,000 employees worldwide.