18.07.2014

Cargotec changes mind on MacGregor flotation

Cargotec has decided to reverse is plan to separately list its MacGregor crane business on an Asian stock market

The company announced its partial divestment plan in September 2012 (See Cargotec to float marine business ) and appointed Eric Nielsen as president a year later, part of his mission was to help make the float possible and then lead the independent company. He resigned last month. (See Cargotec appoints MacGregor president and Nielsen resigns from MacGregor )

In a statement today the company said: “Cargotec's board of directors expects that shareholder value will be best created by fully focusing on the integration of newly acquired businesses into MacGregor and by delivering profitable growth within the new MacGregor as part of the overall Cargotec portfolio.”

“MacGregor is seen as a key value driver for Cargotec with a broad range of competitive solutions. The existing strategy is successfully implemented by growing its merchant business and entering to additional offshore markets with its two recent acquisitions Hatlapa and Aker Solutions' former mooring and loading systems unit.”

Vertikal Comment

This decision is not a complete surprise, while the decision was taken almost two years ago Cargotec has not exactly rushed to get this done. It took a full year to find and appoint Nielsen and almost nine months later with no apparent progress he resigns. Either he did not get the job done, or he became frustrated at the company holding back the flotation?

Either way.. it probably makes more sense for Cargotec to keep MacGregor as a wholly owned division, it fits with what it does and selling a minority holding would have simply complicated the business unnecessarily.