Baltic, Car market, Financial Services, Funds, Good for Business, Real Estate

Inchcape and United Motors on May 10 signed an agreement, according to which Inchcape will buy the United Motors' sales offices in Tallinn, Tartu, Parnu and Kohtla-Jarve. At the same time United Motors will keep its sales office in Peetri near Tallinn.

Inchcape group wishes to expand its activity regarding private cars and small commercial vehicles in Estonia, Sorainen law office, who is providing legal counselling for the transaction, reported. With this transaction, Inchcape wishes to increase the number of sales offices and the territorial coverage in Estonia, and to expand the selection of car brands represented in Estonia.

The transaction will need to be approved by the Estonian Competition Authority.

Inchcape Motors Estonia OU sells, services and fixes Jaguar, Land Rover and Mazda cars. The company also sells different types of used cars. Inchcape only has a sales office in Estonia, which is located in Peetri near Tallinn. In 2015, the company earned a profit of 262,000 euros and a turnover of 28.9 million euros.

The enterprise's holding company is the UK-based Inchcape Plc. Group which operates on the markets of 29 countries in northern and southern Asia, Australasia, South America, Africa and Europe. The group's main activities include distribution and retail of motorized vehicles, sales of new and used cars, and after-sales service, including repairs, maintenance and sales of spare parts and accessories.

United Motors has been selling BMW vehicles in Estonia since 2000 and Mini cars since 2002, as of 2006 the company has been selling Kia vehicles in two separate sales offices in Parnu and Kohtla-Jarve. United Motors has five sales offices in Estonia and in 2015 the company earned a profit of 13,900 euros and a turnover of 40.3 mдn euros.

The holding company of United Motors is Belmot AG, a Swiss-based holding company with AS United Motors as its only subsidiary.