The court recognised the right of Merko Ehitus to participate in public procurement and rely on the pre-merger references

On 27 October, the Tallinn Circuit Court ruled that AS Merko Ehitus was
eligible to participate in public procurements and rely on its pre-merger
sales figures and practice. By its ruling, the Tallinn Circuit Court
reversed the decision of the Appeal Committee at the Public Procurement
Office that disqualified Merko Ehitus from the public procurement for
military port organised by the Ministry of Defence. By virtue of the
contested decision the Ministry of Defence had declared AS Merko Ehitus'
bid of EEK 67.8 million the winning bid.  

The court held that the post-merger AS Merko Ehitus had adequate economic
capacity, i.e. business, financial, technical and professional competence
to perform a procurement contract and was entitled to rely on the sales
figures and practice of the former Merko Ehitus for the purpose of the
procurement procedure. According to the court the date of registration
of a company formed in the course of the merger and the principles of
reporting the merger in corporate accounts were irrelevant in the context
of public procurements. 

The ruling of the Tallinn Circuit Court may be appealed in cassation
within 30 days from delivery of the ruling.


Alar Lagus
Member of the Board
+372 6 805 109
alar.lagus@merko.ee