Konecranes Offers Divestiture to Ensure Approval of Terex MHPS Acquisition

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.

Michael Roth

July 20, 2016

2 min read

Konecranes is willing to divest a smaller firm in order to ensure regulatory approval of its acquisition of Terex MHPS.

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.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.