MacGregor Cleared to Buy TTS Unit
Marine and offshore equipment and services form MacGregor announced on Monday it has received a clearance decision from the Chinese competition regulator, SAMR, for the company’s acquisition of the marine and offshore businesses of TTS Group ASA. Based on revised estimates, potential cost synergies are estimated to be around EUR 25-30 million on annual level.
MacGregor, part of Cargotec, had previously announced approvals from German and South Korean authorities in November and December 2018 respectively, and said it now has all the regulatory approvals needed to be able to complete the transaction, which was announced in February 2018. It expects to close the transaction on July 31.
The Chinese competition authority approval includes temporary requirements relating to the terms and conditions of certain new equipment business undertaken in China, and the need to hold certain new equipment businesses separately for a period of two years, MacGregor said.
The company also lowered potential cost synergies estimates from EUR 30-35 million to EUR 25-30 million reached within three years due to delayed closing.