The offer, which is at a 15% premium to the pre-bid share price, will be financed with existing cash and debt financing.

Terex chairman and chief executive officer Ronald DeFeo said: “Terex intends to build on the strong brand and service franchise of Demag in Germany and abroad. This transaction is predicated upon growth and not cost reduction.”

Demag declined to comment as its management sought to assess the bid.

Dusseldorf-based Demag is a leading provider of industrial and harbor cranes and a successful deal would make Terex a world leading crane company

The Terex offer comes just six months after Demag’s management fought off an approach by Finnish company Konecranes.

However, Konecranes abandoned the plan in February following Demag’s refusal.

Over the last Decade, Terex has bought four big German businesses, including Demag’s former sister company Demag Mobile Cranes.