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MLex Market Insight

Cargotec-Konecranes deal highlights EU-UK regulatory differences; and CADE’s penalty reckoning

MLex Market Insight

MLex Market Insight

News

4.99 Ratings

🗓️ 8 April 2022

⏱️ 23 minutes

🧾️ Download transcript

Summary

The collapse of a deal involving two Finnish crane companies — Cargotec and Konecranes — as a result of regulatory obstacles has thrust into the spotlight differences in outlook between the UK and the European Union on mergers and acquisitions. The European Commission had been prepared to wave the deal through — albeit with undertakings from the companies to divest an array of assets; but the UK’s Competition and Markets Authority concluded that the undertakings on the table wouldn’t be enough to allay its fears of competitive harm. The deal highlighted and solidify the differences between those regulators that are prepared to work with undertakings; and those who aren’t. Also on the podcast today: Brazil’s CADE faces scrutiny over antitrust penalties.

Transcript

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0:00.0

Hello, welcome back. It's great to see you again. I'm James Panicki, M-Lex's Asia-Pacific

0:15.6

Senior Editor, and I'm here to take you through some of the biggest regulatory stories covered by our team of reporters around the globe.

0:24.2

In just under 10 minutes from now, we'll be crossing to our correspondent in Sao Paulo, Brazil,

0:29.6

to talk once again about the workings of the country's competition regulator and its in-house tribunal.

0:37.1

And it's not just inside baseball.

0:39.6

The way Kajé is being run and recent structural changes are likely to have a very

0:45.0

real impact on the way competition matters are dealt with in Brazil.

0:50.0

First up, though, a question.

0:51.8

When it comes to mergers and acquisitions, are you team UK or team European Commission?

0:59.2

It's a question that comes down to your view on legal remedies and undertakings.

1:04.1

Can merging companies be trusted to proceed with an anti-competitive deal simply because they undertake to do X, Y and Z, or Z for our

1:14.4

US listeners. Well, in the post-Brexit firmament that's now taking shape, there appears to be a

1:20.3

clear division between regulators that adhere to the stance of the UK Competition and Markets

1:26.5

Authority, which appears unwilling to accept remedies,

1:30.5

and those that, like the European Union, are prepared to waive deals through when the offer is right.

1:37.4

It's all come to a head with the now abandoned merger between two Finnish companies.

1:43.1

Victoria Ibitoye is an MLEC senior correspondent

1:46.5

covering M&A from London and she's the co-author of a piece of analysis dealing with this

1:52.5

very issue and she joins us now. Victoria so as we now know cargo tech and

1:59.0

cone cranes abandoned their merger after the CMA blocked it.

2:04.1

So maybe start by telling me something about that decision by the CMA.

2:09.6

Yes, so the CMA blocked Cargo Tech and Cone Cranes merger last week.

...

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