The European Commission has conditionally approved the planned merger between Cargotec and Konecranes.
The approval – which follows the Commission’s extensive investigation and widespread consultation with market participants across Europe – is conditional on the divestment of Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions.
Konecranes’ Lift Truck business includes the manufacturing and commercialisation of reachstackers, full container handlers, empty container handlers, as well as forklift trucks. This includes manufacturing plants in Sweden and China, and contracts with distributors. Cargotec’s Kalmar Automation Solutions business consists of its full cranes and straddle/shuttle carriers, 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 parties’ container handling equipment businesses but allow the combined company to combine other businesses and continue to be a strong player in the market segment.
The completion of the merger remains subject to further feedback and approvals from various other competition authorities, among others the Department of Justice of the USA and the Competition and Markets Authority of the UK.
The companies said that completion of the merger by the end of H1 2022 seems “challenging”.