A PYMNTS Company

Australian Watchdog Has Issues With Finnish Cargo Equipment Merger

 |  October 28, 2021

The Australian Competition & Consumer Commission (ACCC) has outlined preliminary competition concerns in relation to a proposed merger between Finnish container handling equipment companies Cargotec and Konecranes.

In Australia, Cargotec’s Kalmar business and Konecranes’ Port Solutions business supply heavy equipment such as cranes, straddle carriers and reach stackers that move shipping containers to and from ships, trains and trucks. Their main customers are stevedores and other container handling companies.

“The market feedback we’ve received is that Cargotec and Konecranes are the only proven suppliers in Australia of straddle carriers used at terminals,” ACCC Chair Rod Sims said.

“If Cargotec and Konecranes merge, the only potential alternative for customers will be ZPMC, which has never secured sales in Australia.”

The ACCC is concerned that Cargotec’s merger with Konecranes would also result in significant consolidation in the supply of gantry cranes, which are a type of overhead crane on rails or wheels.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.