The two Finnish construction companies YIT and Lemminkäinen announced the combination of the two companies by way of a public merger in June 2017. The merger was approved by the extraordinary general meetings of YIT and Lemminkäinen in September 2017, and the merger was completed early 2018 after receiving the final approval decision from the FCCA.

Lemminkäinen was one of the largest paving providers in the Nordic countries and one of the largest building constructors in Finland with a strong position in special infrastructure contracting. Lemminkäinen’s main market area was Finland. In addition, Lemminkäinen operated mainly in Sweden, Norway, Denmark, Russia and the Baltic countries. The combined annual revenue of YIT and Lemminkäinen was approximately € 3.4 billion and operating profit some € 85 million at the time of the merger.

The combination was implemented as a statutory absorption merger whereby Lemminkäinen was merged into YIT. Shareholders of Lemminkäinen were given as merger consideration 3.6146 new shares in YIT for each share in Lemminkäinen owned by them. The total new YIT shares issued to shareholders of Lemminkäinen was 83,876,431, corresponding to a market value of some € 850 million at the time of the merger.

After the merger, YIT became the largest Finnish and a significant North European construction company. The company’s pro forma revenue for 2018 was approximately € 3.8 billion and adjusted operating profit some € 135 million. YIT has 10,000 employees in 11 countries, and its business operations consists of developing and building apartments and living services, business premises and entire areas. Furthermore, YIT specializes in demanding infrastructure construction and paving.

Summa was the sole financial advisor of YIT in the merger.