Cargotec and Konecranes have continued discussions with competition authorities regarding their merger to form the Future Company.
The merger was previously approved by regulators in China in August 2021 but presented potential problems on competition in the container handling equipment sector. Both companies have since been in talks with the relevant competition authorities to find satisfactory ways to mitigate concerns.
Cargotec and Konecranes have now provided an update on the merger, saying remedy requirements are “more complex than expected.”
“Cargotec and Konecranes have discussed remedies with relevant competition authorities based on a commitment offered to the European Commission to divest Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions. Both companies consider the offered remedy package as sufficient and feasible,” said Cargotec in statement.
“Further investigations regarding the proposed remedies and negotiation with relevant competition authorities regarding antitrust concerns continue.”
The companies are currently awaiting the decision from the authorities, but are still committed to completing the merger by the end of the first half of this year as initially planned.
Until all merger closing conditions are met and the deal is completed, the two solution providers will continue to operate separately and independently.
The new Future Company seeks to use a customer-centric operating model, utilising its four independent businesses in different customer segments, these being industrial, maritime, ports, and roads.
The planned operating model will also see technology drive sustainability and the company’s efforts in elements such as advanced research, innovation, group IT and digital.
Heads for departments such as Integration and Strategy and M&A have already been elected. These were confirmed by both companies’ Boards of Directors.