Giant Shipping Equipment Companies Ditch Merger Attempt After US, UK Regulators Object
Shipping equipment companies Cargotec and Konecranes ditched their bid to make a merger of equals one day after DOJ told them that their settlement proposal was insufficient to address important competition concerns in four areas of shipping container handling equipment…
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used by port customers to move goods, DOJ said March 29. The U.K.'s Competition and Markets Authority also blocked the transaction. Cargotec and Konecranes both provide container handling equipment services to port terminals across the globe. In October 2020, the firms announced their intent to combine under a $5 billion deal. Following an Antitrust Division investigation, DOJ said that the transaction "would have eliminated intense competition" between the two rival companies in already highly concentrated markets. CMA found that British customers would have few remaining alternative suppliers if the companies combined.