M&A security

Cyber Espionage Fears Stoked by China’s Zoomlion Bid for Terex

Mistrust of China and wariness about its cyber spying are fueling a public policy campaign to halt a corporate acquisition involving a U.S. defense contractor. 

The debate surrounding an unsolicited bid by China’s industrial equipment manufacturer Zoomlion to acquire Connecticut-based Terex Corp. has turned into a microcosm of deeper foreign policy and security issues. The potential acquisition is drawing increased attention in Washington and stirring speculation about China using its industrial and financial clout to gain leverage against the United States. 

Members of Congress have urged the U.S. government to scrutinize the deal because of Zoomlion’s ties to the Chinese government and the People’s Liberation Army. Security concerns aside, opposition to the deal also is motivated by business reasons, as Zoomlion’s offer has disrupted Terex’s merger with Finland’s Konecranes. The European firm was in the midst of merging with Terex before Zoomlion come in with a bid, and talks were suspended as Terex leaders weigh their options.

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