UK highlights competition concerns over $ 5 billion merger between Konecranes and Cargotec – archyde

General view of the Finnish industrial crane manufacturer Konecranes headquarters in Hyvinkaa, Finland, October 1, 2020. Markku Ulander / Lehtikuva / via REUTERS

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November 26 (Reuters) – The UK regulator on Friday raised competition concerns over a deal between Finnish company Konecranes (KCRA.HE) and handling machine manufacturer Cargotec (CGCBV.HE), said this would result in UK customers having fewer alternative suppliers.

The companies provide container handling equipment and services to port terminals and other industrial customers worldwide.

They announced a merger on equal terms in October 2020, which gave them a combined market value of around 4.5 billion euros (5.06 billion US dollars).

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The Competition and Markets Authority (CMA) opened an investigation into the deal in July, its first in-depth investigation to run alongside a review by the European Union since Brexit.

In its preliminary findings, the CMA expressed concerns that the deal could result in lower quality of service or higher prices for port terminals.

“Our competition concerns need to be addressed to ensure that the deal does not put these customers at a disadvantage and that there is no negative impact on UK consumers and businesses,” said Martin Coleman, Chair of the CMA Inquiry Group.

The companies said they are in a dialogue with regulators and expect the merger to close in the second half of next year.

The final report of the CMA is due by April 1st.

A decision by EU antitrust regulators, which opened a full investigation into similar concerns raised by the CMA in July, is due by January 13.

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Reporting by Yadarisa Shabong in Bengaluru; Adaptation by Arun Koyyur

Our standards: The Thomson Reuters Trust Principles.


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