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.
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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.