Chinese construction equipment maker Zoomlion Heavy Industry Science & Technology Co. announced on Friday that it has given up on its pursuit to acquire US-based Terex Corporation. The proposed acquisition talks failed after six months of negotiations.

"Unfortunately, after many months of discussions, Zoomlion was unable to provide a fully financed, binding proposal for the purchase of Terex with or without MHPS," David Sachs, chairman of the board of Terex, said in a statement.        

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Zoomlion said it was not able to agree with Terex on a price, adding that Terex's expectation on valuation was way too high. Zoomlion emerged as a potential bidder to acquire Terex in August last year, after outbidding Finland-based company Konecranes Plc.

Zoomlion's lucrative offer forced Terex Corporation to terminate its agreement with Konecranes earlier this month. However, Zoomlion agreed to sell its material handling and port solutions business to the Finnish company for approximately $1.3 billion.      

Konecranes has said Zoomlion's announcement on Friday would not affect its acquisition plan, and it would continue to work towards the planned purchase.           

After Friday's announcement, Zoomlion joins a list of Chinese companies that have failed to acquire big US Corporation in recent months. Chinese companies have been facing hurdles in their acquisition drive owing to regulatory problems and national security concerns.

The most high-profile acquisition that failed to materialize in recent months was Anbang Insurance Group's takeover of Starwood Hotels & Resorts Worldwide. The Chinese insurance company had agreed to pay $14 billion for Starwood Hotels but later withdrew its proposal on technical grounds.

TagsZoomlion China, Zoomlion, Terex Corporation, china