Konecranes Confirms Approach to Potentially Combine with Demag

Konecranes Plc confirmed that it approached Demag Cranes last month to discuss combining the two companies. Konecranes notes this was a preliminary approach, and management of Demag Cranes has responded, reporting it has no interest in engaging in any dialogue regarding such a potential combination. To date, there has been no concrete negotiations between the two companies.

Konecranes previously stated it sees a need for consolidation in the crane industry, particularly in Europe, and it is continuously evaluating its strategic options in this respect.

"We believe that a combination of Konecranes and Demag Cranes would follow a convincing industrial logic and would be highly beneficial to both companies and their respective stakeholders," Konecranes said in a statement. "Konecranes is convinced that if Demag Cranes were willing to engage in a dialogue, a structure for a potential business combination could be agreed that would be in the interest of both companies' stakeholders and also be viable from a regulatory perspective. However, currently there is no certainty that any transaction will materialize."