{"id":10175,"date":"2022-03-29T13:51:29","date_gmt":"2022-03-29T13:51:29","guid":{"rendered":"https:\/\/www.findadistributor.com\/news\/?p=10175"},"modified":"2022-03-29T13:51:29","modified_gmt":"2022-03-29T13:51:29","slug":"konecranes-cargotec-merger-blocked","status":"publish","type":"post","link":"https:\/\/www.findadistributor.com\/news\/konecranes-cargotec-merger-blocked\/","title":{"rendered":"Konecranes, Cargotec Merger Blocked"},"content":{"rendered":"

The UK Competition & Markets Authority (CMA) has blocked the merger between Konecranes<\/a>\u00a0and Cargotec<\/a>.<\/p>\n

According to the CMA\u2019s final report, the remedies\u2014which would have removed all overlapping businesses of the two companies and were accepted by the European Commission (EC)\u2014would not be effective in addressing the CMA\u2019s concerns and thus the planned merger between\u00a0Konecranes<\/a> and Cargotec<\/a> cannot be completed.<\/p>\n

The completion of the planned merger would have required approvals from all relevant competition authorities. Thus, Konecranes<\/a> and Cargotec<\/a> have decided to cancel the planned merger.<\/p>\n

Konecranes<\/a>\u00a0and Cargotec<\/a>\u00a0have obtained clearances for the planned merger from numerous competition authorities.\u00a0As announced on February 24, 2022, the EC conditionally approved the planned merger between Cargotec<\/a> and Konecranes<\/a> on the basis of the same remedy package rejected by the CMA, which comprised commitments to divest Konecranes<\/a> Lift Truck business and Kalmar Automation Solutions. In addition, the State Administration for Market Regulation (the competition authority in China) and nine other jurisdictions have approved the planned merger.<\/p>\n

In addition to the clearances of the above competition authorities, completion of the merger remained subject to further approvals from various other competition authorities, including the Department of Justice (DOJ) in the United States,\u00a0with whom Cargotec<\/a> and Konecranes<\/a> have been in continuous dialogue.<\/p>\n

In response to feedback received from the CMA during the course of their investigations, the boards of directors of Konecranes<\/a>\u00a0and Cargotec<\/a>\u00a0carefully considered amending the remedy package offered to the EC further, as well as offering alternative remedy packages to address the concerns raised by the CMA. The boards of directors did not, however, find any satisfactory solution which would have addressed the concerns of the CMA and which would have been in the best interest of the shareholders of Konecranes<\/a>\u00a0and Cargotec<\/a>, and of the combined company, without jeopardising the rationale of the proposed merger as presented on 1 October 2020.<\/p>\n

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‘The Board of Cargotec is convinced that the merger would have created substantial value for the entire industry as well as shareholders by improving sustainable material flow’ \u2014 Ilkka Herlin, the Chairman of Cargotec.<\/p><\/div>\n

As a consequence of the CMA\u2019s negative final\u00a0report, the boards of directors Konecranes<\/a>\u00a0and Cargotec<\/a>\u00a0have therefore concluded that it is in the best interest of each of Konecranes<\/a>\u00a0and Cargotec<\/a>\u00a0and their respective shareholders that the merger is cancelled.<\/p>\n

Christoph Vitzthum, the Chairman of Konecranes<\/a> stated:<\/p>\n