UK Merger Block Marks First Major Divergence From EU

Post-Brexit, the UK Competition and Markets Authority (CMA) is reviewing complex international transactions in parallel with the European Commission (EC). The authorities generally coordinate with each other when carrying out these investigations.

But consistent outcomes are not guaranteed. In the first major divergence in approach, the CMA has blocked the planned USD5 billion merger between Cargotec and Konecranes, just weeks after the EC cleared the deal with remedies.

Cargotec and Konecranes are both large players in the provision of container handling equipment and services to port terminals and industrial customers across the globe. It was therefore unsurprising that the deal attracted close scrutiny from a number of merger control authorities. Concerns were mainly centred on the lack of remaining competitors in the relevant markets, and the potential impact of the deal on global and/or national supply chains.