Cargotec and Konecranes propose divestments to satisfy competition concerns

Cargotec and Konecranes have submitted a remedy package to the European Commission committing to divest Konecranes’ Lift Truck business and Cargotec’s Kalmar Automation Solutions, as the pair seek to mitigate competition authority’s concerns.

According to the Finnish companies, the proposed divestitures would eliminate overlaps between the parties’ container handling equipment businesses but allow the merged company to combine others and continue to be a strong player in all aspects in container handling equipment.

The pair understand that the Commission will now examine the proposed remedy package and may conduct a customary market testing.