Konecranes has disclosed that the European Commission has commenced Phase II review of the merger between it and Cargotec with the completion of the merger expected by the end of H1/2022
On 1 October 2020, Konecranes Plc and Cargotec Corporation announced that the companies have signed a combination agreement and plan to combine through a merger, subject to regulatory and other approvals.
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 (not today Monday July 5) 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 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.
In another development, Konecreanes announced a change in its leadership team.
Timo Leskinen, SVP for Human Resources and a member of the Konecranes Leadership Team, has decided to leave the company and will take a position at another company. He will leave Konecranes on 30 September 2021.
“Timo has been a highly valued member of our Konecranes Leadership Team during the past eight years. I want to thank Timo for all his contributions at Konecranes and wish him the best of luck in his future career”, says Rob Smith, President and CEO of Konecranes.
Konecranes will appoint a successor in due course.