Chinese competition regulators have approved the takeover by MacGregor of the marine and offshore businesses of TTS Group ASA. German and South Korean competition authorities had already approved the deal and MacGregor, a subsidiary of Helsinki-listed Cargotec, now has all of the regulatory approvals necessary for the takeover to go ahead. The transaction, originally announced in February 2018, is likely to close on July 31st.
Potential cost synergies were originally estimated at EUR 30-35 million on an annual level and were expected to be reached within three years of closing. However, while the companies have been waiting for approvals, some of the cost savings have already been made. The value of the synergies has been reduced, therefore, and is now estimated at between EUR 25-30 million on an annual level and are also expected to be reached within three years of closing.
Cargotec has not changed its outlook, published in February 2019, and still expects operating profit for 2019 to improve on the EUR 242.1 million that the company made in 2018.