21.08.2002

Terex purchase of Demag approved

The European Union's competition directorate has given a green light to Terex's proposed purchase of Demag Mobile Cranes from Siemens. The directorate concluded that "The deal does not pose any competition problems in Europe."

The deal involves the manufacturing and marketing of mobile telescopic cranes and mobile lattice boom cranes. The commission's investigation was focused on the market for mobile telescopic cranes, where Terex and Demag are both active, to ascertain whether the deal could give the US company a dominant position in Europe or in parts of it.

However, the Commission concluded that there was no such risk irrespective of the geographic definition of the market, be it European-wide or national in size.

In the European Economic Area, Terex will, said the Commission, face competition from the German companies Liebherr, Grove (now part of Manitowoc) and Faun. In Italy, where the combined market share is the highest, Terex will also face competitive pressure from several Italian manufacturers such as Locatelli, Ormig and Marchetti.