EU approves Cargotec/Konecranes merger
The European Commission has approved the planned merger between Cargotec and Konecranes, but with some tough conditions.
The approval is conditional on the divestment of Konecranes' Lift Truck business and Cargotec's Kalmar Automation Solutions. Konecranes’ Lift Truck business includes its reach stackers, full container handlers, empty container handlers and forklift trucks, and includes manufacturing plants in Sweden and China.
Cargotec’s Kalmar Automation Solutions business includes its cranes and straddle/shuttle carrier business, including Kalmar's manufacturing plant in Poland and a licence for use of Cargotec’s Kalmar brand for the divested product categories.
The divestitures would eliminate overlaps between the two companies container handling businesses but allow the rest of the merged company to freely compete in the markets they cover.
The completion of the merger remains subject to further feedback and approvals from various other competition authorities, including the Department of Justice of the United States and the Competition and Markets Authority in the UK.
Given that the approval terms have turned out to be more challenging than thought the completion of the merger by mid-2022 now seems unlikely. Until the deal is completed, both companies will continue to operate separately and independently.