Zoomlion said that "although the parties to the transaction have made their joint efforts to closely negotiate on the proposed transaction recently, no agreement can be reached on the crucial terms. The company therefore decided to terminate the negotiation in relation to the proposed acquisition of Terex."
Signaling that it plans to remain an outbound acquisition force, Zoomlion added that it "will continue to seek strategic opportunities for its long-term development, and further procure its strategic transformation and industrial upgrading."
Zoomlion's retreat comes after Terex and Konecranes on May 16 scrapped their nine-month-old, euro 1.8 billion ($2.2 billion) merger agreement following the latest clampdown on inversions, or M&A designed to allow a U.S. company to redomicile in a jurisdiction with lower taxes.
Instead Terex and its former Finnish partner agreed on an asset sale that left the door open for Zoomlion to continue talks with the Westport, Conn. company with a view to making a full or partial bid by May 31.
Konecranes can now press ahead with the $1.3 billion cash-and-stock purchase of Terex's material handling and port solutions business. That transaction will give Terex a 25% stake in the Finnish company.
Terex shares fell 3.5% in New York on Thursday to $24.33, already well below $31.00-per-share level of Zoomlion's most recent bid.
Zoomlion shares in Hong Kong were down 1.2% at HK$2.47 (32 cents).