Cargotec and Konecranes have submitted a remedy package to the European Commission (EC) to divest Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions.
The proposed divestitures could eliminate overlaps between the parties’ Container Handling Equipment businesses but allow the combined company – the ‘Future Company’ – to combine others and continue to be a strong player in all aspects in container handling equipment, the Cargotec Board of Directors wrote in a statement.
“Cargotec and Konecranes are confident that the proposed remedies appropriately address the concerns raised by the EC,” the statement wrote.
Should clearance be obtained based on the offered remedy package, the merger would proceed: comprising of Konecranes’ Industrial Equipment and Service businesses as currently operated; Cargotec’s MacGregor and Hiab businesses as currently operated; as well as the operations of Konecranes’ Port Solutions and Cargotec’s Kalmar businesses.
“Cargotec and Konecranes are confident that the Future Company will create customer value within container handling industry with its wide product and lifecycle service offering, as well as development and innovation capabilities,” the Board continued.
Cargotec and Konecranes will announce the expected financial impact of the proposed remedies once information is available on scope and ancillary arrangements. The possible divestitures are further subject to various local legal requirements.
Cargotec and Konecranes have started an assessment of possible external buyers in order to identify the best alternatives to satisfy authority requests.
The Board added, “Further announcements on the approval processes will be made in due course once further decisions on possible material approval conditions and possible divestitures are made.
“Cargotec and Konecranes remain confident that the merger will be completed by the end of H1/2022. Until all merger closing conditions are met and the transaction completed, both companies continue to operate fully separately and independently.”
