Ships that owners order in the future will increasingly look more and more alike. Not only are yards across Asia merging, the manufacturers of the kit deployed on the vessels are also joining forces. Today, Cargotec announced plans to merge with Konecranes, which would create a dominant name in the world of cargo handling, meaning equipment from the merged entity would be found on more than 60% of all merchant vessels.
This is a pivotal moment for Finnish industry and the material handling industry as a whole
The combination agreement, which will face regulator scrutiny and need shareholder approval, is expected to go through in 2022, creating a Finnish giant in ship equipment with annuals sales of EUR7bn ($8.2bn) 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.
Vitzthum commented today: “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.”
Cargotec chairman Ilkka Herlin said: “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.”