The European Commission commences Phase II review of the merger between Konecranes and Cargotec
On 1 October 2020, Konecranes Plc (“Konecranes”) and Cargotec Corporation (“Cargotec”) announced that the companies had signed a combination agreement and planned to combine through a merger, subject to regulatory and other approvals (the “Transaction”).
Konecranes and Cargotec confirm that they have filed for approval in many of the jurisdictions where the transaction requires regulatory review. The various competition authorities, including the European Commission (“EC”), the UK Competition and Markets Authority, the US Department of Justice and the Chinese State Administration for Market Regulation, are currently reviewing the proposed Transaction.
The EC has today opened a Phase II review in connection with the planned Transaction. The Phase II review is a common step in the EC merger review of global transactions of this size. Phase II will enable the EC to consider the contemplated transaction in further detail. Konecranes and Cargotec will continue to work closely and in active dialogue with the relevant authorities including the EC allowing them to mitigate or eliminate preliminary concerns that the EC has raised. The companies expect that the Phase II review will continue during H2/2021.
The companies are confident that the approvals are received to allow completion of the Transaction by the end of H1/2022. Until completion, both companies will operate fully separately and independently.