Cargotec’s MacGregor business area has completed the acquisition of the marine and offshore businesses of TTS Group.
Cargotec announced in February 2018 an agreement to acquire the businesses for an enterprise value of approximately EUR 87 million. The acquisition was subject to regulatory approvals from the competition authorities in Germany, South Korea, and China, and it was expected to close in the first quarter of 2019.
MacGregor received approvals from the German regulator and South Korean Fair Trade Commission on November 6 and December 27, 2018, respectively.
However, the approval from the Chinese regulator took longer than anticipated , delaying the completion of the acquisition.
The Chinese competition regulator finally gave its approval in mid-July .
Following the receipt of all approvals from the relevant countries and authorities, MacGregor announced the completion on Wednesday, July 31.
According to the company, the acquired businesses will be integrated within MacGregor’s operating structure, and their results will be consolidated into MacGregor’s financial figures as of August 1, 2019.
Based on preliminary estimates, approximately 30 percent of TTS sales are related to TTS companies where the Group’s ownership is 50 percent.
Cargotec plans to consolidate these companies using the equity method, whereby 50 percent of the companies’ net profit will be presented as a separate row in Cargotec’s financial statements before EBIT. This means that sales income from these companies will not be consolidated into Cargotec’s sales.
Offshore Energy Today Staff
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