fbpx
Friday, October 23rd, 2020
Home » Money » Mega-merger: Cargotec and Konecranes to create global cargo giant

Mega-merger: Cargotec and Konecranes to create global cargo giant

PortandTerminal.com, October 1, 2020

HELSINKI, FINLAND – Cargotec and Konecranes have announced that their respective Boards of Directors signed a combination agreement and a merger plan to combine the two companies to create an $8.23 billion cargo equipment giant. For now, the merged company is simply being called “Future Company”.

Cargotec, which specializes in cargo-flow equipment at ports and terminals, saw sales totalling €3.7 billion ($4.35 billion) in 2019. Meanwhile, Konecranes saw €3.3billion ($3.88 billion) in group sales in 2019.

The merger agreement, which will face regulator scrutiny and needs shareholder approval, is expected to go through in 2022, creating a Finnish giant in ship equipment with annuals sales of EUR7bn ($8.23 billion) and a global staff of 29,400.

Cargotec plans to issue new shares to seal the 50:50 merger with Konecranes’ current chairman, Christoph Vitzthum, earmarked as the new entity’s chairman. The new company’s first CEO has yet to be decided.

“Together we are stronger and our combined R&D resources will enable us to accelerate innovation in automation, robotics, electrification and digitalization,” Cargotec CEO Mika Vehvilainen said.

Why the merger?

The two companies say that their goal is to be a leader in “sustainable material flow”. Their combined synergies the companies say are expected to be worth approximately EUR 100 million ($118 million) annually and will be fully realised in the first 3 years from the completion of the merger.

Copyright © 2020 PortandTerminal.com

Check Also

Freight train seen through chainlink fence

CN Railway Revenue Drops 11% as Oil, Metals Shipments Plunge

BLOOMBERG, OCTOBER 21, 2020 Petroleum, coal, metals and automotive volumes all plunged by double-digit percentages …

Flags

ConocoPhillips to Concho for $9.7 Billion – Largest Deal Since COVID-19 Hit

PortandTerminal.com, October 19, 2020 Together, ConocoPhillips and Concho Resources will produce 1.5 million barrels a …