Konecranes has announced that its strategic alliance with hoist manufacturer Kito will be dissolved allowing the latter to bid in a business the Finnish company committed to divest in relation to Terex’s MHPS acquisition.
The dissolution of the alliance will enable Kito to participate in the bidding process for Stahl CraneSystems, the divestment of which is a condition to the European Commission (EC)’s approval of Konecranes’ acquisition of Terex’s material handling and port solutions (MHPS) segment.
Despite the alliance’s dissolution, the non-exclusive cross-distribution arrangements between Konecranes and the Japan-headquartered Kito will remain valid.
The Finnish company will continue to sell Kito’s chain hoists and lever hoists using the Konecranes brands, while the hoist manufacturer will continue to sell Konecranes’ wire rope hoists under its own brands.
Kito will conduct a share repurchase of 5,950,000 shares on September 27, with Konecranes tendering all of its 5,950,000 shares to be repurchased by the Japanese company.
Earlier this month, Konecranes announced that its shareholders approved all proposals of the board of directors and made the necessary decisions to complete the acquisition of Terex’s MHPS segment.
If all goes to plan, the acquisition, which the Finnish company valued at €1.13bn (US$1.26bn) in May 2016, is expected to be closed in early 2017.