Finnish engineering majors Konecranes and Cargotec have won approval from the Finnish Financial Supervisory Authority for their merger prospectus.
The merger was announced in October this year. The proposed combination is scheduled to be implemented as a statutory absorption merger whereby Konecranes will be merged into Cargotec.
Upon completion of the merger, Konecranes and Cargotec shareholders would each own approximately 50 percent of the shares and votes of the future company.
The new company aims to achieve a comparable operating profit in excess of 10 percent, supported by synergies expected to be approximately € 100 million annually and fully realized in the first 3 years from the completion.
As informed, combined annual sales are about €7 billion, while operating profit would have been approximately €565 million based on the 2019 fiscal year.
Completion is expected in the fourth quarter of 2021, and is subject to all competition authority and other customary approvals.