- commission opens in-depth investigation into proposed merger of Cargotec and Konecranes
- commission concerned that the proposed acquisition may reduce competition in the supply of certain container and cargo handling equipment in Europe
The European Commission has opened an in-depth investigation to assess the proposed merger of Cargotec Corporation (‘Cargotec’) and Konecranes Plc (‘Konecranes’) under the EU Merger Regulation says an article on European Sting.
Investigation into proposed merger
Commission opens in-depth investigation into proposed merger of Cargotec and Konecranes. The Commission is concerned that the proposed acquisition may reduce competition in the supply of certain container and cargo handling equipment in Europe.
Executive Vice-President Margrethe Vestager, responsible for competition policy, said: ”Cargotec and Konecranes are two global leaders in the supply of container and cargo handling equipment. We will carefully assess whether the proposed transaction would negatively affect competition in the supply of this equipment, possibly leading to reduced choice and higher prices, to the detriment of European customers.”
The Commission’s preliminary competition concerns
At this stage, the Commission is concerned that the transaction may lead to a reduced choice and higher prices for customers in the European Economic Area for certain container and cargo handling equipment in the following product areas
- gantry cranes
- horizontal equipmen
- mobile equipment.
For each of these types of terminal equipment, the transaction would lead to high combined market shares in already concentrated markets, with limited or even no credible alternative suppliers remaining post-transaction.
The Commission will now carry out an in-depth investigation into the effects of the proposed transaction on these markets to determine whether it is likely to significantly reduce effective competition.
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Source: European Sting
