Finnish engineering majors Cargotec and Konecranes, which launched in 2020 a process to merge the two entities, have unveiled the operating model and leadership team of the future company.
As Offshore Energy reported last year, Cargotec and Konecranes will merge to create a global leader in sustainable material flow. The merger is expected to take place by the end of H1/2022.
“The planned high-level operating model of the Future Company is the result of months of integration planning work and the benchmarking of best practices across various industries, and the selection of the planned leadership team is the result of a rigorous selection process,” Mika Vehviläinen , Future Company President and CEO, commented.
As explained, the Future Company’s designed operating model would be a customer-centric model as the planned four independent businesses would each serve one clear customer segment — industrial, maritime, ports and roads. This would ensure decision-making close to the customer by fully empowered, agile businesses.
The planned leadership for the Future Company, confirmed by both companies’ Boards of Directors, would only become effective as of the completion of the merger, which is currently expected to take place by the end of H1/2022.
Plans related to the high-level operating model including businesses and business units (including but not limited to the plans to combine two business areas in industrial area and to combine the existing port businesses to create a new business in ports area), group operations, functions, future organization structure and further selections are subject to separate decision-making as well as to various local legal requirements.
Until all merger closing conditions are met and the merger is completed, both Cargotec and Konecranes will operate fully separately and independently, and the current Cargotec Leadership Team members continue to be fully in charge of their current areas of responsibility.
In July 2021, the European Union commenced Phase II review of the merger which is expected to be completed during the second half of 2021.
In August 2021, the merger received the green light from the State Administration for Market Regulation, the competition authority in China.
However, the merger plan faced a hurdle in Australia after the Australian Competition & Consumer Commission (ACCC) outlined preliminary competition concerns in relation to the proposed merger.