Konecranes Oyj — M&A Activity 2021

Dec 9, 2021

Progress in Regulatory Proceedings in the Merger between Konecranes and Cargotec: The Companies have Submitted Commitments to the European Commission to Satisfy Competition Concerns

Progress in Regulatory Proceedings in the Merger between Konecranes and Cargotec: The Companies have Submitted Commitments to the European Commission to Satisfy Competition Concerns

KONECRANES PLC INSIDE INFORMATION December 9, 2021 01:00 PM EET

Progress in Regulatory Proceedings in the Merger between Konecranes and
Cargotec: The Companies have Submitted Commitments to the European Commission to
Satisfy Competition Concerns

As communicated earlier, Konecranes and Cargotec have continued active dialogue
and cooperation with relevant competition authorities and have been considering
ways to mitigate the concerns raised by the competition authorities to secure
approvals to complete the merger of Konecranes and Cargotec.

Konecranes and Cargotec have today submitted a remedy package to the European
Commission ("EC") comprising a commitment to divest Konecranes' Lift Truck
business and Cargotec's Kalmar Automation Solutions. The proposed divestitures
would eliminate overlaps between the Parties' Container Handling Equipment
businesses but allow the combined company (the "Future Company") to combine
others and continue to be a strong player in all aspects in Container Handling
Equipment. Konecranes and Cargotec understand that the EC will now examine the
proposed remedy package and may conduct a customary market testing.

Konecranes and Cargotec are confident that the proposed remedies appropriately
address the concerns raised by the EC. Should clearance be obtained based on the
offered remedy package, the merger would proceed comprising of Konecranes’
Industrial Equipment and Service businesses as currently operated, Cargotec’s
MacGregor and Hiab businesses as currently operated as well as the operations of
Konecranes’ Port Solutions and Cargotec’s Kalmar businesses other than the areas
subject to remedy discussions. Konecranes and Cargotec are confident that the
Future Company will create customer value within container handling industry
with its wide product and lifecycle service offering, as well as development and
innovation capabilities.

The divestments, if made in line with the proposed commitments, will not change
the industrial logic behind the combination of Konecranes and Cargotec. The
Companies will announce the expected high-level financial impact of the proposed
remedies once information is available on the exact scope and possible ancillary
arrangements relating to the possible remedy divestments in due course.

The final decision on possible divestitures of any businesses as well as
possible terms and conditions thereof will be confirmed only after the EC's
review and market testing process, as well as further proceedings with the other
competent authorities. The possible divestitures are further subject to various
local legal requirements. Konecranes and Cargotec have started an assessment of
possible external buyers in order to identify the best alternatives to satisfy
the authorities’ requests and to support the future development of these
businesses.

Further announcements on the approval processes will be made in due course once
further decisions on possible material approval conditions and possible
divestitures are made.

Konecranes and Cargotec remain confident that the merger will be completed by
the end of H1/2022. Until all merger closing conditions are met and the
transaction completed, both companies continue to operate fully separately and
independently.

KONECRANES PLC
The Board of Directors

FURTHER INFORMATION
Kiira Fröberg, Vice President, Investor Relations, tel. +358 (0) 20 427 2050

IMPORTANT NOTICE

The Merger and the merger consideration securities have not been and will not be
registered under the U.S. Securities Act of 1933 (the “Securities Act”), and may
not be offered, sold or delivered within or into the United States, except
pursuant to an applicable exemption of, or in a transaction not subject to, the
Securities Act.

The information in this release is not directed to, or intended for distribution
to or use by, any person or entity that is a citizen or resident of, or located
in, the United States or any other locality, state, country or other
jurisdiction where such distribution or use would be contrary to law or
regulation or which would require any registration or licensing within such
jurisdiction and it does not constitute an offer of or an invitation by or on
behalf of, Konecranes, or any other person, to purchase or sell any securities.

The information in this release contains forward-looking statements, which are
information on Konecranes’ current expectations and projections relating to its
financial condition, results of operations, plans, objectives, future
performance and business. These statements may include, without limitation, any
statements preceded by, followed by or including words such as “target,”
“believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,”
“project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other
words and terms of similar meaning or the negative thereof. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond Konecranes’ control that could cause Konecranes’ actual results,
performance or achievements to be materially different from the expected
results, performance or achievements expressed or implied by such forward
-looking statements. Such forward-looking statements are based on numerous
assumptions regarding Konecranes’ present and future business strategies and the
environment in which it will operate in the future.

Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity enhancing lifting
solutions as well as services for lifting equipment of all makes. In 2020, Group
sales totaled EUR 3.2 billion. The Group has around 16,500 employees in 50
countries. Konecranes shares are listed on the Nasdaq Helsinki (symbol: KCR).

DISTRIBUTION
Nasdaq Helsinki
Major media
www.konecranes.com