Cargotec և Konecranes both offer a range of container equipment և services to port terminals այլ other industrial customers worldwide. The two companies announced an agreement to merge in a $ 5 billion deal in October 2020.
Following an in-depth investigation into Phase 2, the Competition և Market Authority (CMA) found that the merger would impair competition in the supply of a wide range of container handling equipment. A CMA investigation into these markets has revealed that Cargotec և Konecranes is in close competition for business in the UK և that UK customers will have few alternative suppliers left after the merger.
While the merging companies assumed that there would be a competitive threat from Chinese suppliers in all markets in the future, the CMA found that this would not be enough to prevent a significant loss of competition that would lead to the merger of the two main established suppliers.
This loss of competition could have serious consequences for other UK port terminal customers, including high prices, low quality goods and services with a wide range of container handling products.
Cargotec և Konecranes have introduced measures to address CMA concerns. Proposed funds will include asset package development from each of their existing container handling equipment companies, which may then be sold as a newly combined business.
Thoroughly testing the proposed remedies, the CMA found that these asset packages lacked potential, so they would not allow buyers to compete as strongly as mergers currently do. The process of removing these assets from existing mergers and merging them into a newly merged business will be difficult and risky, and can significantly undermine the effectiveness of the business buyer.
Because Cargotec և Konecranes refused to consider alternatives that would include the sale of one of their existing container handling units, the CMA concluded that only a merger ban could effectively address the large-scale concerns identified.
Martin Coleman, chairman of the CMA survey team, said:
These are global businesses that make significant sales to UK customers, so we can ensure that competition is protected in the UK.
Container handling equipment plays an important role in the smooth operation of UK ports, and recent years have shown us how quickly problems can arise in the supply chain for UK consumers: businesses.
The solutions proposed by Cargotec և Konecranes could not effectively address our concerns, so we had no choice but to block this merger to ensure that UK consumers և businesses were not in a worse position as a result of the transaction.
The deal is being reviewed by a number of competitors. While each investigation is conducted independently, the CIA has worked closely with other agencies during its investigation. The European Commission announced the results of its inquiry on 24 February 2022, Investigations in a number of other jurisdictions (including Australia and the US) are still ongoing.
For more information, visit the case page.
Notes to editors:
- For media inquiries, contact CMA Press Office at 020 3738 6460 or firstname.lastname@example.org:.
- The CPA announced its preliminary results November 26, 2021. It provisionally clarified that the proposed merger had given rise to competitive concerns in the supply of container handling equipment.
- The CMA has found competing concerns with the supply of cargo handling equipment for seven different types of containers (rubber cranes, self-propelled cranes, trucks, heavy-duty trucks, empty containers, trucks, shuttles, and automatic terminal tractors). .
- In most of these markets, a CMA investigation has found that Cargotec և Konecranes’s close competitors for business in the UK’s that UK customers will have few alternative suppliers left after the merger. A CMA investigation into the emerging automotive tractor supply market has found that the deal could hurt competition from Terberg’s joint venture (which currently works with Konecranes), which are currently the two main players.
The CMA blocks the planned Cargotec / Konecranes merger
SourceThe CMA blocks the planned Cargotec / Konecranes merger