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Tue June 18 2024

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EU authorities clear Terex takeover of Demag

5 Aug 11 The European Commission has cleared under the EU merger regulation the proposed acquisition of German manufacturer Demag Cranes AG by US-based Terex Corporation.

A Terex reachstacker
A Terex reachstacker

The Commission concluded that the transaction would not raise competition concerns because the companies' activities are largely complementary and the transaction would consequently not significantly modify the structure of the market.

The Commission examined the transaction's impact on the supply of mobile harbour cranes which is the only business area where the parties' activities overlap. Mobile harbour cranes are mounted on tyres and can therefore move around a port or terminal as required to handle a wide range of cargo. Demag is one of the world's leading manufacturers of mobile harbour cranes which it sells under the Gottwald brand. Terex acquired a presence in mobile harbour cranes with its acquisition of Italy's Fantuzzi Group.

The Commission's investigation found that although the proposed transaction will technically reduce the number of players in an already concentrated market, the market impact is not expected to be significant due to Terex's limited market share in this sector. As a result, it does not exert a significant competitive constraint on competitors.

The Commission therefore concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it.

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