INTERNATIONAL business REPORT
TEREX SELLS MINING BUSINESS …
NAVISTAR IN INDIAN COMMERCIAL
TRUCK JV … SWENOX, DAIMLER SIGN
AFTERTREATMENT AGREEMENT …
Terex Corp. has signed a definitive
agreement to sell its mining business
to Bucyrus International Inc., South
Milwaukee, Wis., U.S.A., for US$1.3 billion in cash. The products to be divested
by Terex in the transaction include
hydraulic mining excavators, electric
drive mining trucks, track and rotary
blasthole drills, the highwall miner, as
well as the related parts and aftermarket
service businesses, including the com-pany-owned distribution locations.
Brands include O&K, Unit Rig, Reedrill,
Superior Highwall, Halco and Hypac.
The transaction, which is subject to
customary regulatory approvals, but not
board approvals, is expected to close in
the first quarter of 2010. Combined, the
two companies would have about 10 000
employees in 100 locations. As a result of
the acquisition, Bucyrus plans to add
manufacturing and office jobs in South
Milwaukee, where both the Bucyrus and
Terex product lines will be managed.
Navistar Inc. has launched the first of
its joint venture commercial trucks for the
Indian market. Mahindra-Navistar Automotives Ltd. (MNAL), the commercial
vehicle joint venture between Mahindra &
Mahindra Ltd. (M&M) of India and Navistar
Inc., unveiled a family of commercial
trucks and tractors in the range of 25, 31,
40 and 49 ton (equivalent GVW ranges of
approximately 25 401 to 49 442 kg).
In 2005, Mahindra & Mahindra Ltd.
and Navistar entered into the MNAL joint
venture to manufacture light, medium
and heavy commercial vehicles for India
as well as export markets. The joint venture plans to expand its product line further over the next two years to emerge
as a commercial vehicle manufacturer
from 3. 5 to 49 ton GVW with passenger
transport, cargo and specialized load
application configurations.
The product development for this new
family of vehicles was handled by
Navistar, with Navistar’s team working
with MNAL engineers to bring North
American technology into the Indian
market. The Mahindra-Navistar range of
medium and heavy commercial vehicles
will be manufactured at Mahindra &
Mahindra’s new greenfield plant at
Chakan, near Pune, India. The plant,
which spans more than 283 hectares,
will produce other Mahindra & Mahindra
products as well.
Manitex International Inc., a manufacturer of boom truck cranes, rough terrain forklifts and special mission-oriented
vehicles, has acquired the assets and
certain liabilities of Load King Trailers,
Elk Point, South Dakota, U.S.A., from
Genie Industries, a subsidiary of Terex
Corp. Load King is a manufacturer of
specialized custom trailers and hauling
systems typically used for transporting
heavy equipment, for a total consideration of US$3.1 million, consisting of a
promissory note of US$2.75 million.
Load King’s last five years’ average
annual revenues were approximately
US$23 million.
Swedish manufacturer Swenox has
signed an agreement with the German
truck manufacturer Daimler for the supply of exhaust emissions technology.
According to local newspaper reports,
the agreement is worth about US$140
million and will result in 200 new jobs at
Swenox. The agreement follows an
R&D agreement, which has been in
force between the two companies, with
the aim of developing exhaust emissions systems.
Swenox will supply Daimler with
exhaust systems meeting the more stringent emissions legislation being implemented. “According to Daimler’s own
prognosis, the amount of delivery will be
80 000 to 90 000 exhaust systems per
year,” said Andreas Mehner, managing
director of Swenox AB. The new agreement will start in 2012.
Danfoss A/S said that through its
wholly owned subsidiary Danfoss Acquisition Inc., it intends to launch a cash
tender offer for all of the outstanding
shares of common stock of Sauer-Danfoss Inc. not already owned by Danfoss and its subsidiaries. Danfoss and its
subsidiaries currently own a stake of
approximately 75.7% in Sauer-Danfoss.
Given the current challenging economic and competitive environment
faced by Sauer-Danfoss, Danfoss said
it believes that private ownership will
assist Sauer-Danfoss in reaching its
operational and strategic objectives.
Danfoss said its sole interest is in
acquiring the shares of Sauer-Danfoss
that it does not already own, and it has
no interest in a disposition of its controlling interest in Sauer-Danfoss or in any
other strategic transaction involving
Sauer-Danfoss other than the proposed offer. ;
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