Cargotec plans to exit Kalmar’s heavy cranes business and is mulling the sale of MacGregor in the wake of Cargotec’s failed merger with Konecranes
In a stock filing, Cargotec said its board of directors will refocus the company’s direction for “higher financial performance”, focusing on sustainability and growth in profitable core businesses Hiab, Kalmar Mobile Solutions and Kalmar’s horizontal transportation business.
In late March, the UK antitrust regulator the Competition and Markets Authority blocked a proposed US$5Bn merger between cargo specialists MacGregor and Konecranes, voicing concerns that the loss of competition would seriously affect UK port terminals and other customers, including higher prices and lower quality products and services across the range of container-handling products.
Cargotec now reports it will evaluate its options regarding MacGregor, including a potential sale of the business. Kalmar’s focus will pivot towards mobile services and will start planning an exit from the heavy port cranes business.
A statement from Cargotec read, “Going forward, Kalmar would offer industry shaping, eco-efficient cargo-handling equipment and lifecycle services in the mobile equipment product categories, straddle and shuttle carriers as well as Bromma spreaders.”
“This strategic direction and the refocusing of Cargotec demonstrate our commitment to profitable growth, sustainability and the excellence of our people adapting to new challenges. The board is convinced it is the right time to ensure an accelerated but orderly transition to an even more profitable and futureproof business” said Cargotec chair of the board Ilkka Herlin.
Hiab’s business portfolio will remain the same, but Cargotec plans to further accelerate the development of Hiab’s M&A pipeline.
Cargotec chief executive Mika Vehviläinen added, “Our vision remains, but we will further focus our businesses. That would enable us to accelerate M&A and R&D investments in our profitable core and I’m confident with our refocused strategic direction, we will be well positioned to capture growth in industry trends of electrification, automation and digitalisation.”
Source: Riviera Marine
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