The merger agreement that will be subject to regulatory and shareholder approval, is expected to go through in 2022, creating a Finnish giant in ship equipment with annuals sales $8.2bn (EUR7BN) and a global staff of nearly 30,000.
The equipment of the merged company would be found on more than 60% of all merchant vessels, it said.
Cargotec plans to issue new shares to seal the 50:50 merger. The new company’s ceo has yet to be decided but the statement said that Christoph Vitzthum, Konecranes’ chairman, will stays as chairman of the future entity.
“The combination of Konecranes and Cargotec, with their iconic technology brands, innovation capabilities, talented people and focus on sustainability, will create a company that is clearly greater than the sum of its parts, delivering robust synergies and creating a unique platform for shareholder value creation. Customers will benefit from the companies’ combined technologies and even better service capabilities. This is a pivotal moment for Finnish industry and the material handling industry as a whole, and we are fully ready and committed to seize this historic opportunity,” said Vitzthum.
“Sustainability has been high on Cargotec’s agenda since its foundation and this merger enables us to become a global leader in sustainable material flow. Our customers are increasingly seeking green solutions and together we will have better opportunities to solve customers’ challenges. I believe this is an excellent value creation opportunity both from a business perspective and also shaping global trade for the better,” commented Ilkka Herlin, Cargotec chairman.
The proposed combination of Konecranes and Cargotec will be executed through a statutory absorption merger pursuant to the Finnish Companies Act whereby all assets and liabilities of Konecranes are transferred without a liquidation procedure to Cargotec. As a result of the completion of the merger, Konecranes will automatically dissolve.
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