We advised KL-Kuntahankinnat Oy, a municipal public procurement service provider owned by Suomen Kuntaliitto ry (the Association of Finnish Local and Regional Authorities), concerning its merger into Hansel Oy, the Finnish Government’s central purchasing entity, owned by the Finnish state.
The case concerned novel and unprecedented issues as the public procurement scene in Finland had never before been subject to a transaction of such a scale. The transaction created a joint central purchasing entity for governmental and municipal authorities.
The transaction required in-depth expertise of public procurement and competition law issues and understanding of the legislative process. The transaction was subject to amendment of the Act governing Hansel Oy and approval of the Finnish Parliament. The structure and timetable of the transaction was subject to changes during the process partly due to the involvement of the State.
D&I’s role in the transaction evidences our strong M&A and Competition & Public Procurement practices and the seamless co-operation between them.
In 2018, Hansel Oy and KL-Kuntahankinnat Oy procured contracts with an aggregate value of approximately EUR 2 billion. KL-Kuntahankinnat Oy handles public procurement processes on behalf of municipalities and other local and regional authorities. Large volume acquisitions of KL-Kuntahankinnat Oy cover categories such as energy, ICT, social and healthcare services.
Suomen Kuntaliitto ry is in charge of promoting local self-governance and advancing the interests and development of municipalities. The Association represents all 311 Finnish municipalities.