The European Commission has cleared the proposed acquisition of German crane manufacturer Demag Cranes AG by the U.S. company Terex Corporation, which is nearing completion ( of 22 June 2011). Brussels said it had concluded that the transaction will not result in a negative impact on competition because the two companies are largely complementary, and therefore the merger will not fundamentally alter the market structure.
The examination of the European Commission focused mainly on the segment of mobile cranes, in which the activities of the two companies overlap Demag being one of the world's leading manufacturers in the industry through the brand Gottwald and Terex entered this market segment in 2008 with Italy's acquisition Fantuzzi ( of 12 August 2008). Noting that the merger will reduce the number of technical companies in a market that is already concentrated, the Commission explained that the impact of the transaction, however, will not be significant as the market share of Terex in this segment is limited.
Following the green light in Brussels, Terex expects to complete the acquisition of Demag next week.
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