Mandate Vinge advises Borlänge municipality in conjunction with the European Commission’s state aid review of the real estate transfer to IKEA and Ikano

May 07, 2012

Vinge has advised Borlänge municipality and the municipally-owned company, Norra Backa i Borlänge AB in connection with the European Commission’s state aid review of the real estate transfer to IKEA and Ikano.

In 2010, Norra Backa i Borlänge AB and Borlänge municipality sold two properties to IKEA and Ikano for construction of, among other things, an IKEA superstore. However, in 2011 a complaint was submitted to the European Commission alleging that the properties were sold well below market value and that the municipality had thereby provided IKEA and Ikano with unlawful state aid. Following two reviews with questions being submitted to the European Commission, the Commission has now stated that the transaction does not constitute any form of state aid for the benefit of the purchasers.

Vinge’s team consisted of partner Martin Johansson and associate Hanna Danwall at Vinge’s Brussels office.

“We have once again received confirmation that the municipality acted correctly and this matter may now be allowed to rest. A lot of people have been waiting for this decision, including Borlänge residents and investors. An IKEA superstore has a significant value, both in terms of Borlänge’s attractiveness at various different levels and for the future prospects of our municipality” says Jan Bohman, the chairman of the municipal executive board and chairman of Norra Backa AB, in a press release from Borlänge municipality. 

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