China approves Cargotec and Konecranes merger

Combining Cargotec and Konecranes will make a € 7 billion a year crane business

Market competition authorities in China have given the go-ahead to the proposed merger between international Finnish companies Cargotec and Konecranes.

The companies announced the merger has received unconditional approval from China’s State Administration for Market Regulation. In July, the European Commission and the Competition and Markets Authority in the UK began the next stage of their studies of the proposal – a Phase II review.

Cargotec and Konecranes executives remain confident that all the necessary international approvals will be received to allow the deal to be completed by the end of June 2022.

* The companies also said that current Cargotec CEO Mika Vehviläinen has been chosen to be president and CEO of the future company to be formed after the merger is completed.

Vehviläinen has been Cargotec CEO since 2013. He is also a member of the Board of Directors at Danfoss, the Danish engineering multinational. Before joining Cargotec, Vehviläinen was president and CEO of Finnair Plc and COO at Nokia Siemens Networks.

Konecranes chairman Christoph Vitzthum will chair the newly merged company.

Announcing the appointment of Mika Vehviläinen, Vitzhum said, “The future company has an ambition to become a global leader in sustainable material flow, and both Boards are confident that Mika Vehviläinen, with his robust leadership and industry experience and proven track record of creating value at Cargotec and other companies, is exactly the right person for the position.”