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International Internet Magazine. Baltic States news & analytics Wednesday, 20.06.2018, 07:02

Lemminkainen shareholders give green light to merger with YIT

BC, Tallinn, 13.09.2017.Print version
A general meeting of the shareholders of Finnish construction company Lemminkainen on September 12th approved the merger of Lemminkainen into rival construction group YIT, informs LETA/BNS.

The merger is intended to be completed either on Nov. 1, 2017 or Jan. 1, 2018. The completion of the merger is subject to, inter alia, merger control approvals from competition authorities.

The companies announced the merger plan in June in order to strengthen the position of the companies on the northern European markets.

The revenue of the merged company of YIT and Lemminkainen is estimated to amount to approximately 3.4 billion euros per year, while profit will total 85 million euros per year. The companies are hoping to save 40 million euros per year by 2020 through the merger. The merged company will employ altogether 10,000 people in 11 countries.

Lemminkainen will technically be merged with YIT, so that Lemminkainen shareholder will own 40% of the merged company, while YIT shareholders will own 60%.

Finnish construction companies YIT and Lemminkainen operate in Finland, Russia, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Czech Republic, Slovakia and Poland.

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