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February 25, 2022

Cargotec-Konecranes merger secures conditional EU nod

The EC approved the deal after performing a detailed investigation and taking feedback from diverse market participants.

The European Commission (EC) has cleared a merger between Finnish engineering companies Cargotec and Konecranes, under certain conditions.

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The deal has been approved under the EU Merger Regulation and is conditional on the sale of certain operations.

The EC gave the green light to the proposed deal after conducting a detailed investigation.

During this probe, the EC collected feedback from diverse market participants, such as terminal operators and manufacturers of cranes and other container handling equipment.

Cargotec and Konecranes have offered certain commitments to address the EC’s identified concerns regarding the transaction.

These commitments are aimed at warding off competition concerns, which have been flagged by the EC.

In the presence of significant entry hurdles, lack of competition would, in turn, trigger higher prices.

Cargotec has now committed to offloading its full cranes and straddle/shuttle carrier business.

This includes a manufacturing plant in Poland as well as a licence for the use of Cargotec’s Kalmar brand for the divested product types.

Furthermore, Konecranes has committed to selling its business that deals in the production and commercialisation of reach stackers, full container handlers, empty container handlers and forklift trucks.

This covers contracts with distributors along with manufacturing plants in Sweden and China.

In a statement, the EC said: “The commission, therefore, concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.”

The proposed Cargotec-Konecranes merger is currently being investigated by numerous other competition agencies.

Last November, the Competition and Markets Authority (CMA), the UK’s competition regulator, raised concerns in connection with this proposed merger.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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