The UK Competition & Markets Authority (CMA) has blocked the proposed merger between Cargotec and Konecranes after its in-depth investigation identified substantial competition concerns.
“Cargotec and Konecranes both offer a range of container handling equipment and services to port terminals and other industrial customers worldwide… Following an in-depth phase two investigation, the CMA found that the merger would harm competition in the supply of a wide range of container handling equipment products. Within these markets, the CMA’s investigation found that Cargotec and Konecranes are competing closely for business in the UK, and that UK customers would have few remaining alternative suppliers after the merger,” said the CMA.
“While the merging businesses suggested that there would be an increased competitive threat from Chinese suppliers across all markets in future, the CMA found that this would not be sufficient to prevent the significant loss of competition that the merger of two key established suppliers would bring about,” it added.
The completion of the planned merger would have required approvals from all relevant competition authorities. Therefore, Cargotec and Konecranes have decided to cancel the planned merger.
Cargotec and Konecranes had obtained clearances for the planned merger from numerous competition authorities. The European Commission conditionally approved the merger on the basis of a remedy package, which would have seen the divestment of Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions. The companies were still in the process of receiving approvals from various other competition authorities, including the Department of Justice in the USA.
