30.11.2021

Merger concerns for Konecranes/Cargotec

The UK’s Competition & Market Authority (CMA) has raised concerns over the planned merger of Konecranes and Cargotec.

Provisional findings from the authority’s investigation has revealed that the merger ‘may be expected to result in a substantial lessening of competition in several product markets’ within the UK and Europe. The product markets include rubber tyre gantry cranes, automated stacking cranes, shuttle carriers, container handlers, heavy duty forklifts, reachstacker and automated terminal tractors.

It has also concluded that the merger ‘may result in the form of higher prices and/or reduced quality, range or service’ to UK customers and issued notice of possible remedies. Interested parties have until 10th December to discuss the possible remedies and 17th December to discuss its overall findings with the CMA.

Both Konecranes and Cargotec disagree with the findings, and have said they are confident the merger will be completed in the first quarter of 2022. It also said it will consider the report’s notice of possible remedies and continue to engage with the CMA and other relevant competition authorities, such as the European Commission and the US Department of Justice. Meanwhile, China’s State Administration for Market Regulation has already approved the merger.