The European Commission Conditionally Approved the Proposed Merger; the Completion Remains Subject to Further Authority Approvals
CARGOTEC CORPORATION, INSIDE INFORMATION, 24 FEBRUARY 2022 AT 4:00 PM (EET)
The European Commission Conditionally Approved the Proposed Merger; the Completion Remains Subject to Further Authority Approvals
The European Commission has conditionally approved the planned merger between Cargotec and Konecranes. The approval – which follows the Commission’s extensive investigation and widespread consultation with market participants across Europe – is conditional on the divestment of Konecranes' Lift Truck business and Cargotec's Kalmar Automation Solutions. Konecranes’ Lift Truck business includes its business for the manufacturing and commercialisation of reach stackers, full container handlers, empty container handlers, as well as forklift trucks. This includes manufacturing plants in Sweden and China, and contracts with distributors. Cargotec’ Kalmar Automation Solutions business consists of its full cranes and straddle/shuttle carrier business, including Kalmar's manufacturing plant in Poland and a licence for use of Cargotec’s Kalmar brand for the divested product categories. The divestitures would eliminate overlaps between the parties' Container Handling Equipment businesses but allow the combined company to combine other businesses and continue to be a strong player in all aspects of Container Handling Equipment.
The completion of the merger remains subject to further feedback and approvals from various other competition authorities, among others the Department of Justice of the United States and the Competition and Markets Authority of the United Kingdom. These authorities continue to review the merger based on their own processes and assessments of the competitive effects of the combination. As communicated earlier, Cargotec and Konecranes are in continued dialogue with the relevant competition authorities. In this respect, the views of some of the authorities have turned out to be challenging. Therefore, the completion of the merger by the end of H1/2022 seems challenging and for now the companies do not give further comments on the timetable or the merger control processes. The parties will revert to the merger closing timing later and further announcements will be made in due course.
Until all merger closing conditions are met and the transaction completed, both companies continue to operate fully separately and independently.
Cargotec Corporation
The Board of Directors
For further information, please contact:
Carina Geber-Teir, SVP Communications, carina.geber-teir(a)cargotec.com, tel. +358 40 5024 697
Aki Vesikallio, Director, Investor Relations, aki.vesikallio(a)cargotec.com, tel. +358 40 729 1670
IMPORTANT NOTICE
The Merger and the merger consideration securities have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), and may not be offered, sold or delivered within or into the United States, except pursuant to an applicable exemption of, or in a transaction not subject to, the Securities Act.
The information in this release is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, the United States or any other locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction and it does not constitute an offer of or an invitation by or on behalf of, Cargotec, or any other person, to purchase or sell any securities.
The information in this release contains forward-looking statements, which are information on Cargotec’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Cargotec’s control that could cause Cargotec’s actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Cargotec’s present and future business strategies and the environment in which it will operate in the future.
Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec has signed United Nations Global Compact Business Ambition for 1.5°C. The company's sales in 2021 totalled approximately EUR 3.3 billion and it employs around 11,000 people.
