KONECRANES PLC INSIDE INFORMATION December 9, 2021 01:00 PM EET
Progress in Regulatory Proceedings in the Merger between Konecranes and Cargotec: The Companies have Submitted Commitments to the European Commission to Satisfy Competition Concerns
As communicated earlier, Konecranes and Cargotec have continued active dialogue and cooperation with relevant competition authorities and have been considering ways to mitigate the concerns raised by the competition authorities to secure approvals to complete the merger of Konecranes and Cargotec.
Konecranes and Cargotec have today submitted a remedy package to the European Commission ("EC") comprising a commitment to divest Konecranes' Lift Truck business and Cargotec's Kalmar Automation Solutions. The proposed divestitures would eliminate overlaps between the Parties' Container Handling Equipment businesses but allow the combined company (the "Future Company") to combine others and continue to be a strong player in all aspects in Container Handling Equipment. Konecranes and Cargotec understand that the EC will now examine the proposed remedy package and may conduct a customary market testing.
Konecranes and Cargotec are confident that the proposed remedies appropriately address the concerns raised by the EC. Should clearance be obtained based on the offered remedy package, the merger would proceed comprising of Konecranes’ Industrial Equipment and Service businesses as currently operated, Cargotec’s MacGregor and Hiab businesses as currently operated as well as the operations of Konecranes’ Port Solutions and Cargotec’s Kalmar businesses other than the areas subject to remedy discussions. Konecranes and Cargotec are confident that the Future Company will create customer value within container handling industry with its wide product and lifecycle service offering, as well as development and innovation capabilities.
The divestments, if made in line with the proposed commitments, will not change the industrial logic behind the combination of Konecranes and Cargotec. The Companies will announce the expected high-level financial impact of the proposed remedies once information is available on the exact scope and possible ancillary arrangements relating to the possible remedy divestments in due course.
The final decision on possible divestitures of any businesses as well as possible terms and conditions thereof will be confirmed only after the EC's review and market testing process, as well as further proceedings with the other competent authorities. The possible divestitures are further subject to various local legal requirements. Konecranes and Cargotec have started an assessment of possible external buyers in order to identify the best alternatives to satisfy the authorities’ requests and to support the future development of these businesses.
Further announcements on the approval processes will be made in due course once further decisions on possible material approval conditions and possible divestitures are made.
Konecranes and Cargotec remain confident that the merger will be completed by the end of H1/2022. Until all merger closing conditions are met and the transaction completed, both companies continue to operate fully separately and independently.
KONECRANES PLC
The Board of Directors
FURTHER INFORMATION
Kiira Fröberg, Vice President, Investor Relations, tel. +358 (0) 20 427 2050
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, Konecranes, or any other person, to purchase or sell any securities.
The information in this release contains forward-looking statements, which are information on Konecranes’ 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 Konecranes’ control that could cause Konecranes’ 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 Konecranes’ present and future business strategies and the environment in which it will operate in the future.
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity enhancing lifting solutions as well as services for lifting equipment of all makes. In 2020, Group sales totaled EUR 3.2 billion. The Group has around 16,500 employees in 50 countries. Konecranes shares are listed on the Nasdaq Helsinki (symbol: KCR).
DISTRIBUTION
Nasdaq Helsinki
Major media
www.konecranes.com
