In order to address potential European Commission concerns about the supply of hoists in the European Economic Area, Finland-based Konecranes, which recently agreed to acquire Terex’s Material Handling Ports Solutions business for $1.22 billion, has offered to divest its Stahl CraneSystems business. The offered commitments will be subject to a market test by the EC.
As a result of the offered commitments, the EC has extended its review period for the transaction and is now expected to render its decision on the MPHS acquisition by August 8. The offered commitments may be subject to change until the EC rules.
Stahl CraneSystems, based in Krünzelsau, Germany, is a global supplier of hoisting technology and crane components. The company is well-known for its capability in building engineered system solutions. Its customers include distributors, crane builders and engineering, procurement and construction companies.
“We have had a very constructive dialog with the European Commission,” said Konecranes president and CEO Panu Routila. “As a result, we have offered to divest our Stahl CraneSystems business. We believe that this offer will fully resolve the commission’s concerns and that we are able to proceed with the MHPS acquisition.”
Konecranes and Terex remain fully committed to Konecranes’ acquisition of Terex’s MHPS division and are working closely with the competition authorities to obtain regulatory approvals allowing completion of the transaction as planned. While EC approval is one of the most important regulatory approvals it is not the only one needed and Konecranes said it will update the market as regulatory approvals are received.
Terex’s cranes business, which services ports and factories primarily, has manufacturing operations in 16 countries.
