CARGOTEC CORPORATION, INSIDE INFORMATION, FEBRUARY 24, 2022 AT 4:00 PM (EET)
The European Commission has conditionally approved the proposed merger; completion remains subject to further government approvals
The European Commission has conditionally approved the proposed merger between Cargotec and Konecranes. The approval – which follows an in-depth investigation by the Commission and extensive consultation with market players across Europe – is conditional on the divestiture of Konecranes’ Forklift business and Kalmar automation solutions from Cargotec. Konecranes’ forklift business includes its manufacturing and marketing activities of stackers, loaded container handlers, empty container handlers, as well as forklifts. This includes manufacturing plants in Sweden and China and contracts with distributors. Cargotec’s Kalmar Automation Solutions business includes all of its crane and straddle carrier/shuttle business, including Kalmar’s manufacturing facility in Poland and a license to use Cargotec’s Kalmar brand for categories of products sold. The divestitures would eliminate overlap between the parties’ container handling equipment businesses, but allow the combined company to combine other businesses and continue to be a significant player in all aspects of container handling equipment .
The completion of the merger remains subject to further comments and approvals from various other competition authorities, including the United States Department of Justice and the United Kingdom Competition and Markets Authority. These authorities continue to review the merger based on their own processes and assessments of the competitive effects of the combination. As previously communicated, Cargotec and Konecranes maintain an ongoing dialogue with the relevant competition authorities. In this regard, the view of some authorities has proved difficult. Therefore, completing the merger by the end of the first half of 2022 appears challenging and at this time the companies are not providing further comment on the timing or merger control processes. The parties will revert to the timing of the closing of the merger at a later date and further announcements will be made in due course.
Until all conditions to closing the merger are satisfied and the transaction closes, the two companies will continue to operate completely separately and independently.
Board of directors
For more 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
The Merger and the securities in consideration for the merger have not been and will not be registered under the United States Securities Act of 1933 (the “Securities Act”) and may not be offered, sold or delivered in the United States, except under an applicable exemption from the Securities Act or in connection with a transaction not subject to it.
The information contained in this release is not intended for, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States or any other locality, state, country or other jurisdiction where a such distribution or use would be contrary to law or regulation or would require registration or license in such jurisdiction and does not constitute an offer or invitation by or on behalf of Cargotec, or any other person, to buy or sell all securities.
The information in this release contains forward-looking statements, which are information about Cargotec’s current expectations and projections regarding its financial condition, results of operations, plans, objectives, performance and future activities. Such statements may include, but are not limited to, any statements preceded, followed by, or including words such as “target”, “believe”, “expect”, “aim”, “intend”, ” can”, “anticipate”, “estimate”. , “”plan”, “project”, “will”, “may have”, “probable”, “should”, “could”, “might”, and other words and terms of similar meaning or their negative. These statements 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 any anticipated results, performance or achievements expressed or implied. What these forward-looking statements mean These forward-looking statements are based on numerous assumptions about 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 life through its leading cargo handling solutions and services. Cargotec’s business areas Kalmar, Hiab and MacGregor are pioneers in their fields. With their unique position in ports, at sea and on the road, they optimize global freight flows and create lasting customer value. Cargotec has signed the United Nations Global Compact Business Ambition for 1.5°C. The company’s sales in 2021 totaled around 3.3 billion euros and it employs around 11,000 people.