Partek Corporation and KCI Konecranes have abandoned what could have been the biggest materials handling merger in recent years.

The two companies had announced on May 21 that they would "form a major engineering company that would be a global leader in materials handling". But two days later they said the merger would not go ahead.

On May 20, Kone Corporation, KCI's parent, had announced it had offered to buy the State of Finland's 30.2 percent share in Partek. Partek supported the plan, and the deal was to have been finalised at extraordinary general meetings of both companies.

But Partek, on May 23, released this statement: "KCI Konecranes has received written confirmation that Kone Corporation will not support the merger plan ... There are no possibilities for the merger to be completed under the prevailing circumstances. As a result ... KCI Konecranes and Partek have decided to terminate the merger plan."

KCI president and chief executive Stig Gustavson said it was "business as usual" and the aborted merger would not impact on KCI's future.

"The investigatory phase of the merger has been going on for some time. We did not stop pursuing our normal activities because of this deal. Bolt-on acquisitions are forthcoming, and our strategy of strong organic growth, combined with selected acquisitions, has not been held back at all," he said.

Forkliftaction.com News could not contact Partek before publication deadline.