SIA “Mūsa Mežciems” is acquiring the assets of SIA “Auto Bassadone”

SIA “Anda Pauniņa Law Office” provided legal support to SIA “Mūsa Mežciems” (formerly SIA “Auto Blitz”) in a significant merger transaction, under which SIA “Mūsa Mežciems” acquired the assets of SIA “Auto Bassadone.” As a result of this transaction, SIA “Mūsa Mežciems” expanded the number of car brands it represents in Latvia and took over the car dealership located at 145 Biķernieku Street in Riga.

SIA “Mūsa Mežciems” acquires the assets of SIA “Auto Bassadone.” Through this asset purchase, SIA “Mūsa Mežciems” has expanded its range of represented car brands and, in addition to the Opel brand it already represented, will now also market Citroën, Peugeot, Hyundai, and Jeep vehicles.

SIA “Mūsa Mežciems” is part of the SIA “Mūsa Motors Grupa” group of companies, which has been operating in the automotive sales and after-sales service sector in Latvia since 1995. With this transaction, the group increased its market share in new car sales from approximately 7% to 11%, meaning that the group’s annual new car sales volume now totals approximately EUR 77 million.

In addition to new car sales, this transaction also enabled the group of companies to expand its market share in the used car market, the automotive parts retail market, and the automotive maintenance and repair market.

SIA “Anda Pauniņa Law Office” provided legal support in structuring and executing the transaction, including:

•           structuring, preparing, and submitting the merger notification to the Competition Council;

•         coordinating communications with the Competition Council;

•         assessing the risks of the transaction from the perspective of competition law, tax, and other aspects;

•          providing legal support in negotiating, finalizing, and concluding the business acquisition and long-term lease agreements (asset deal and long-term lease).

Legal management of the transaction was provided by the firm’s partner, attorney-at-law Andis Pauniņš, together with attorney-at-law’s assistant Vladlens Rožnovs.

We are grateful to SIA “Mūsa Mežciems” for their trust and for the opportunity to be part of this significant transaction in Latvia’s new car sales market, which strengthens the client’s position in the Latvian automotive market and lays the foundation for future growth.