Attorney’s at law „Liepa, Skopiņa /BORENIUS” acted as the legal advisor for SIA “Aile” and SIA “Tapeks” merger transaction.
Merger negotiations between the owners of both the companies were lasting for almost a year. The agreement was reached in order to strengthen the positions in the market and to provide the consumers of construction materials in Latvia with new, more extensive and comfortable construction material purchase possibilities, accompanied by high service level.
Currently the number of competitors and new foreign companies entering the construction material market is considerable, and therefore “Tapeks” and “Aile” are herewith attempting to strengthen their positions in the Latvia market.
As far as the total turnover of both the companies considerably exceeds 25 million lats, the Competition Council is still going to assess the impact of the merger upon the market.
After effectuation of the planned merger, none of the companies will change its name and the changes will affect only the owners and the composition of the board of the companies.
In case of a merger, the next year’s total turnover of the company could reach 80 million lats.
The future aims of the entrepreneurs concern penetration into foreign markets, thus, first of all it is planned to strengthen the positions in Latvia.
The “Tapeks” and “Aile” merger will result in creation of the largest and most influential construction material trade company in Latvia, by accounting for ca. 20% of the total construction material market of Latvia.
The article is prepared according to LETA news.