China Business News: What is the purpose of Zoomlion acquires Terex?

Recently, the US construction machinery giant Terex Corporation (TEX.NYSE, hereinafter referred to as Terex) announced that Zoomlion (000157.SZ), one of the largest construction machinery enterprises in China, had delivered an acquisition offer to it. Allegedly, Zoomlion will spend a total of US$3.3 billion (about 21.7 billion Yuan) to acquire Terex at a price of US$30 per share. After the news came out, Zoomlion also confirmed the ongoing acquisition. What’s the reason for Zoomlion’s massive acquisition of Terex, a world-famous machinery enterprise headquartered in Connecticut of America despite such a depression in the construction machinery industry? The author holds that this perhaps is related to Zoomlion’s medium-and long-term strategy, current capital reserve and financing conditions, etc.