OREANDA-NEWS. May 17, 2011. Elektroskandia, part of leading global electrical supplies distributor Rexel Group, has implemented a cross-border merger of its Baltic operations into an Estonian corporation. Elektroskandia Baltics is now registered in Estonia and will continue to operate branches in Latvia and Lithuania, reported the press-centre of SORAINEN.

Elektroskandia's objective in the merger was to optimise the structure and costs of its Baltic operations and improve profitability. By merging the resources of its Latvian and Lithuanian subsidiaries through Estonia and introducing regional cost and quality controls, the company seeks to offer improved customer service.

"Our target is to develop processes and harmonise the business model throughout the Baltics to meet customer needs," said Klaus Wasastjerna, CEO of the merged Elektroskandia Baltics. "Our objective in this merger is to offer even better customer service by pooling the experience and professional know-how of the three offices. A pan-Baltic merger is a natural development for a business, as many companies treat the markets in Estonia, Latvia and Lithuania as one."

Law firm SORAINEN advised on the cross-border merger. Senior associate Risto Agur adds: "An increasing number of companies, especially large or multinational corporations, are optimising and consolidating their business in the Baltics by means of cross-border mergers as a practical way to trim overlapping corporate functions, save on costs and improve regional competitiveness. A merged company is usually larger, stronger and more profitable. Companies merging their pan-Baltic operations may also gain new business, notably through procurements where earlier transaction experience and turnover figures are required."

In recent years, law firm SORAINEN has advised on several cross border mergers in the Baltics, including the pan-Baltic merger of If P&C Insurance – one of the first mergers of financial institutions under the Cross-Border Mergers Directive – as well as the cross-border merger of the Baltic operations of leading global insurance brokerage, reinsurance and consulting group Aon Corporation, and Siemens, a global powerhouse in electronics and electrical engineering.

The SORAINEN team in this assignment included senior associate Risto Agur and associate Karl J. Paadam from Estonia, partner Eva Berlaus and associate Zanda Braksa from Latvia, and partner Algirdas Peksys and associate Ina Budelinaite from Lithuania.