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Cargotec and Konecranes merger requirements “more complex than expected”

February 3, 2022  By Crane & Hoist Canada staff

cargotec and KonecranesPhoto: Konecranes

The remedy requirements for the planned merger between Cargotec and Konecranes are “more complex than expected,” according to an update provided by the two companies.

In late 2020, both companies announced their boards of directors signed a combination agreement and a merger plan to combine Konecranes and Cargotec.

In November, the Competition & Market Authority of the United Kingdom announced its Provisional Findings and published its Notice of Possible Remedies regarding the planned merger of Konecranes and Cargotec. In its report, the CMA provisionally concludes the transaction may result in a substantial lessening of competition in several product markets.

The following month, Konecranes and Cargotec submitted a remedy package to the European Commission to mitigate concerns raised by competition authorities regarding the merger of the two companies.

Cargotec and Konecranes have continued their dialogue and cooperation with relevant competition authorities to find satisfactory ways to mitigate concerns raised by the competition authorities to secure approvals to complete the merger of Cargotec and Konecranes.

Cargotec and Konecranes have discussed remedies with relevant competition authorities, based on a commitment offered to the European Commission to divest Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions.

Both companies consider the offered remedy package as sufficient and feasible. Further investigations regarding the proposed remedies and negotiations with relevant competition authorities regarding antitrust concerns continue.

Cargotec and Konecranes are awaiting the authorities’ decisions and continue to work towards the merger being completed by the end of the first half of 2022. Until all merger closing conditions are met and the deal is completed, both companies continue to operate fully separately and independently.

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