China’s foreign exchange regulator said on Wednesday that Zoomlion Heavy Industry Science and Technology Co Ltd’s bid for U.S. crane maker Terex Corp did not have to face any foreign currency hurdle.
Zoomlion said last week that it had dropped its $3.4 billion bid for Terex after failing to agree on terms, clearing the way for a smaller deal between Terex and Finland’s Konecranes .
The State Administration of Foreign Exchange said in a statement that it would continue to support firms that wish to expand overseas.
Talks for Zoomlion to buy Terex were terminated solely due to a failure to agree on price, state media Xinhua quoted Zoomlion Vice President Sun Changjun as saying.
Zoomlion had obtained approval from China’s National Development and Reform Commission ahead of the first round of non-binding bidding last November, while the company had secured funding from Chinese banks to finance the deal, Sun told Xinhua.
Calls to Zoomlion’s headquarters in China were not answered.
Zoomlion and Konecranes had both bid for Terex to help them better cope with cooling Chinese and European demand in the cranes business.
The termination marks the latest setback to corporate China’s ambitions to acquire U.S. assets. In March, Anbang Insurance Group Co unexpectedly withdrew its $14 billion offer to buy Starwood Hotels & Resorts Worldwide Inc.