ACCC investigates merger

News Story
- 4 Nov 2021 ( #1050 ) - Sydney, NSW, Australia
1 min read
Rod Sims
Rod Sims

The Australian Competition & Consumer Commission (ACCC) has outlined preliminary competition concerns in relation to a proposed merger between 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,” says ACCC chair Rod Sims. “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. “While Konecranes’ Australian customer base for gantry cranes is currently small, we received feedback that they are one of the only alternatives to Cargotec for customers in Australia,” says Sims. “The barriers to entry in the container handling equipment market are high as the machinery and software is very sophisticated and suppliers have to invest significant time and resources to develop their equipment and demonstrate that it will work well over a long life.”

The ACCC is also considering the proposed merger’s effect on the supply of mobile container handling equipment in Australia, and repair and maintenance services.

The ACCC has invited submissions from interested parties by 19 November 2021 and will make its final determination in February 2022.

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