A step towards easier cross-border cooperation between companies – recent changes to EU company law

The European Union (EU) is taking another step towards a digital world – a new Directive of the European Parliament and of the Council, which should make it easier for companies to operate across borders, was adopted on 19 December 2024.

Currently, there are administrative and legal obstacles, especially when it comes to proving the status of your company or verifying registers in other Member States, which leads to the need for additional legalisation requirements (such as apostilles).The Directive also aims, at EU level, to ensure greater availability of company data, to help strengthen mutual trust and cooperation between Member States in the internal market and to facilitate their direct use in cross-border activities.

Digital tools for companies – more data, less bureaucracy

Given the different national procedures for ex-ante verification of company documents and information, there are some uncertainties about the data provided in the register of other Member States. To ensure that the information provided is reliable, the Directive sets minimum standards for the verification of company data and Member States will be obliged to ensure that information on companies is accurate.

The interconnection of several existing EU-wide registry systems, including the Business Registers Interconnection System (BRIS), the Beneficial Ownership Registers Interconnection System (BORIS) and the Insolvency Registers Interconnection System (IRI), will make company data more easily accessible across the EU.

The Directive also introduces the principle of single submission – companies will only have to submit certain data once, even if they expand their activities to other EU Member States.

Accordingly, a company setting up a legal entity in another Member State would not have to resubmit information contained in the registers of that company’s Member State.

Thus, facilitating the cross-border use of company data creates easier conditions for cross-border activities, the establishment of new subsidiaries or branches in another Member State.

The Directive also provides for new digital documents. One of them is the multilingual digital EU Power of Attorney, an electronic document whose content complies with national legal requirements for cross-border procedures.

This power of attorney, which will be lodged in the company register, will allow lawyers, notaries, financial institutions, public authorities and other persons with a legitimate interest to check its validity, thus simplifying business procedures in the single market and reducing the formalities of apostilles and translations.

In addition to the digital EU mandate, the Directive also aims to introduce an EU company certificate, which will enable companies in the single market to prove in a simple and cross-border recognised way that the company is legally registered in a Member State.

This certificate, which will have to be issued and validated by national registers, will contain basic information in all EU languages, including the name of the company, the address of its registered office, its representatives, etc. Member States’ authorities and registers will be obliged to recognise and accept the EU company certificate, which should ease the administrative burden for companies when carrying out cross-border administrative procedures, legal proceedings and other business operations in the single market.

Both European templates will be made available electronically and authenticated through the trust services set out in Regulation (EU) No 910/2014, in order to guarantee that the documents contain true and relevant information.

These changes pave the way for a more innovative business environment in Europe, giving companies more opportunities to grow internationally by eliminating the formalities of legalisation and strengthening mutual trust between Member States’ registers.

Impact of the digital euro on financial services

The use of cash has been constantly declining in time. There are various reasons for this – the development of and better access to digital financial services as well as the convenience offered by digital money transfers and the use of payment cards. The Covid-19 pandemic also significantly increased the share of digital payments. According to Ellex in Estonia experts Marion Müürsepp and Anneli Krunks, the introduction of the digital euro should be the next step in developing the digital payment environment. The European Central Bank has been working on the analysis and preparations for the introduction of the digital euro already since 2020, with the aim of having the digital euro as a legal tender in the eurozone before 2030.

What is the digital euro?

Right now, we use cash for payments or in case of digital payments, the money on our payment accounts. The digital euro would provide an alternative payment method where the European Central Bank issues the digital euro which allows to make digital payments without holding money on a payment account. This makes the digital euro an alternative to cash as well as bank transfer payments.

The introduction of the digital euro would enable people to keep digital euros in an application developed for this purpose, i.e. a digital wallet. However, the transfers to and from this digital wallet should still be done through the person’s payment account with a credit or payment institution. It is important that the digital wallet should be accessible also offline, meaning that it would not require an internet connection.

A significant restriction for the digital euro is that only natural persons would be able to use this as a payment method. This means that a natural person can use the digital euro everywhere in the eurozone to make payments, for example, to pay for goods in a store. Once the digital euro is transferred to the merchant or another company, it is immediately converted to commercial bank money. Therefore, payments between companies could be done only as it is now and they would not be able to use the digital euro for their own payments. However, companies must generally enable natural persons to pay using the digital euro.

Whether and why we need the digital euro?

The main purpose of introducing the digital euro has been thought to be the possibility to simplify digital payments for ordinary citizens by providing an alternative to cash and the current digital payment solutions. In addition, the digital euro is seen as a more secure alternative to current electronic payment means. Its offline function would enable digital payments in a situation where the payment solutions of credit institutions are disrupted or the (internet) connection is lost. At the same time, an offline payment would be equally private as a cash payment. Also, since there are no intermediaries (credit institutions and payment institutions), payments with the digital euro would be done immediately and without a service fee.

In addition to the above practical reasons, the digital euro is also seen to have an important geopolitical role. This is because the European Union currently depends to a great extent on non-EU payment solutions. The digital euro would be a Europe-wide alternative to these solutions. Moreover, according to the European Central Bank, the introduction of the digital euro should enable access to digital payments also to those who do not have a payment account for whatever reason.

But the extent (and necessity) of introducing the digital euro depends on the digital payment solutions that currently exist in a particular country. In Estonia and many other member states with well-developed digital payment solutions, where the use of cash is secondary, the digital euro is most likely to have a modest spread. It would still be an important and convenient alternative in cases and places where it is not possible to pay by payment card.

What should financial entities consider with the introduction of the digital euro?

The use of the digital euro would entail both risks and opportunities for financial entities. One of the main risks related to the introduction of the digital euro has been considered to be a decrease in the deposits of credit institutions. Big outflows of deposits from credit institutions to the digital wallets of natural persons could have a negative effect on the banking sector. Due to this, there are plans to limit the amount that a natural person can hold as digital euros in their digital wallet. The amount discussed so far has been 3,000 euros but the exact amount is yet to be determined.

In addition to the volume of deposits, the introduction of the digital euro and enabling digital payments with it would also affect the volumes of current digital payment solutions.

However, the digital euro is not a replacement for cash or current digital payments, it is an alternative. Taking into account that the amount of digital euros that can be used is limited, only natural persons can use it for payments and current digital payment solutions are already convenient and easy for people, the digital euro could first and foremost provide an alternative to cash payments for natural persons. Thus, the introduction of the digital euro would undoubtedly have an impact on the volume of deposits and payments but it would rather be limited.

Alongside the risks, credit and payment institutions should see the digital euro as an opportunity to complement the digital financial services that they are providing. Digital euro payment services can be offered by all payment service providers who are authorised in the European Union, without applying for an additional activity license. Digital euro payment services that are essential for the use of the digital euro by natural persons must be provided free of charge.

At the same time, the payment service providers can provide additional digital euro payment services for a fee. With the introduction of the digital euro, payment service providers should consider which additional digital euro payment services they could offer and how to change the products and services currently provided to natural persons accordingly.

The digital euro is currently in the preparation phase. This includes developing a legal framework for the digital euro, selecting the providers for the digital euro infrastructure and consulting with relevant stakeholders. The decision whether to move from the preparation phase to the pilot phase is planned for the second half of 2025. In case of a positive decision, the pilot phase will test how the digital euro works in real-life situations. According to current plans and if testing is successful, the European Central Bank estimates that the digital euro could be introduced in 2028.

No single-use plastic packaging from May: you’ll have to pay

With the arrival of the new administration of US President Donald Trump, attitudes towards the environment and sustainability across the Atlantic are undergoing a significant change, but the European Union (EU), even in the face of the current geo-political situation, has made its green policy one of its priorities. This is reflected in the fact that since 1 May. New restrictions on the free distribution of single-use plastic packaging in catering establishments in Lithuania will come into force on May 1. These changes are part of the EU’s green initiatives to reduce plastic pollution and promote sustainable consumption.

What is changing and who will be exempted? What are the penalties? Simona Bumblauskytė-Kiauleikienė, Associate Partner at law firm Ellex Valiunas, explains more.

What will change and who is exempt?

“As of 1 May, a ban on the free distribution of single-use plastic food and beverage packaging by catering establishments comes into force. However, exemptions will apply to businesses selling on beaches and at mass events. In such cases, single-use plastic food and drink packaging will only be allowed to be sold subject to a deposit, which can be recovered from consumers by returning the used packaging. The ban will also not apply if the food or drink has been delivered to the point of sale already packaged for individual consumption,” says S. Bumblauskytė-Kiauleikienė.

Caterers will have to offer plastic-free alternatives – single-use packaging, reusable packaging, tableware, she says. However, the provision of alternatives will not be compulsory for takeaway food and drink.

The regime will increase demand for sustainable packaging

The lawyer says that around 40 million disposable coffee cups are used every year in Lithuania, most of which are not recycled and become a source of pollution. Stricter regulation will contribute to an increase in the production of more environmentally friendly packaging, which will reduce the amount of plastic waste in the mixed waste stream. The new regulation should also contribute to a more sustainable catering system.

Fines of up to €5,000 for non-compliance

“In order to monitor compliance with the new regulation, the Department of Environmental Protection will start carrying out targeted inspections in Lithuanian catering establishments from the second half of 2025. Fines of between €1,000 and €5,000 will be imposed on those who fail to comply with the new regulation, and between €30 and €200 on natural persons,” says lawyer Simona Bumblauskytė-Kiauleikienė.

With the constant talk in recent weeks that the US is planning to fully promote the development of the fossil fuel industry, it seems that the world’s green policy today is based only on Europe. It is to be welcomed that the EU is very serious about these issues and continues to be successful in implementing its green policy.

Ellex named Baltic Firm of the Year at the 20th annual Managing IP Awards

Ellex has been named the winner in the highly competitive Baltic Firm of the Year category at the 20th annual Managing IP Awards. This prestigious recognition highlights our exceptional achievements and developments in the field of intellectual property (IP) across the Baltics over the past year.

Congratulations to our outstanding IP project teams and leading partners Ants Nõmper in Estonia, Mārtiņš Gailis in Latvia, and Ąžuolas Čekanavičius in Lithuania for their exemplary work!

The awards are prestigious annual honours recognizing the top firms, individuals, in-house teams, and corporations in the IP area. On April 10, hundreds of guests gathered at a gala event at the Royal Lancaster London to celebrate excellence in IP. As in previous years, the awards recognized in-house teams, law firms, individuals, and corporations behind some of the most innovative and complex IP work of the past year, as well as those shaping the global IP landscape. The awards span across multiple practice areas and more than 50 jurisdictions.

Managing Intellectual Property is a leading global publication and platform that provides in-depth analysis, news, rankings, and insights on intellectual property law and practice.

Find out more about our IP practice here.

More information about the award.

Ellex receives 2024 CEELM Deal of the Year Awards

On the evening of April 1, 2025, the Deal of the Year Awards Banquet brought together, under the same roof, over 200 top-tier lawyers from Central and Eastern Europe’s leading law firms and General Counsel from across the region in Prague. Ellex has received two awards at the CEE Legal Matters Deal of the Year Awards Banquet: 2024 Estonia Deal of the Year for our work on Mainor Ülemiste’s acquisition of stake from Technopolis Baltic Holding, and 2024 Lithuania Deal of the Year award for our work on AB Siauliu’s Securitization Vehicle.

About the projects:

Mainor Ülemiste AS Investment

Ellex advised Neokapital OÜ on the investments in Mainor Ülemiste AS, as a result of which the investor acquired approximately a 35% stake in the group. The investment financed, among other things, the acquisition of a 51% stake in Technopolis Ülemiste AS from Technopolis Oyj (Kildare Partners real estate fund). The core team included Ermo Kosk, Jaanus Ikla, Dmitri Rozenblat, Rutt Värk, Kaisa Jakobsoo, Hanna Pahk, and Karl Rudolf Org.

AB Siauliu Securitization Vehicle

Ellex received the second award for our outstanding work on AB Siauliu’s Securitization Vehicle. This complex financial transaction highlights the expertise and dedication of our team in navigating the intricacies of securitization and ensuring successful outcomes for our clients.

Ellex assisted the European Bank for Reconstruction and Development (EBRD) providing a EUR 25 million loan to the SB Modernization Fund 2, managed by Šiaulių Bankas. The Innovative Fund aims to improve the energy efficiency of multi-apartment buildings and reduce carbon dioxide emissions in Lithuania. This was an unprecedented securitization transaction based on Lithuanian law, requiring a deep understanding of the various aspects of securitization. Ellex team was led by Eglė Neverbickienė, with significant input from Eglė Radvilaitė.

We would like to extend our heartfelt thanks to our clients for their trust and support, which inspire us to achieve these remarkable milestones. We remain focused on delivering exceptional service and fostering strong client relationships and look forward to continuing to contribute to impactful projects in the region.

Click here for more information about the awards.

Ellex arbitration team – among the best in the world

The international arbitration directory Global Arbitration Review (GAR) has again included the Ellex arbitration team in the prestigious GAR 100 ranking. This ranking annually identifies law firms with the strongest arbitration expertise worldwide.

The GAR 100 list includes only exceptional arbitration teams with outstanding reputations and proven experience whose work is visible and significant at the regional and global levels.

This prestigious ranking, compiled by the London-based leading resource on international arbitration news and community intelligence, is based on the firm’s performance in the most complex cases, results, and overall contribution to international arbitration practice.

Ellex’s arbitration team comprises 28 professionals from Estonia, Latvia, and Lithuania, making it one of the largest arbitration teams in the Baltic region.

Ellex arbitration team has significant experience representing states in investment disputes and working on commercial cases in international arbitration institutions such as the​ ICC International Court of Arbitration and the SCC Arbitration Institute.

This recognition reflects Ellex strong position in the region and our growing recognition in the global legal services market.

More about Ellex’s arbitration services and the team: HERE.

How will the anti-money laundering rules of the European Union affect the FinTech sector?

The European Union has taken another step in regulating the prevention of money laundering and terrorist financing. Unlike the past steps, this is not just a clarification of the existing rules. An extensive reform is on the horizon and its objective is to harmonise requirements and strengthen supervision. The new requirements will affect all financial institutions and other obliged persons, but as the authors Anneli Krunks and Elina Lorens highlight, fintech companies should pay particular attention.

The new anti-money laundering and counter-terrorist financing (AML/CTF) package of the European Union is significantly more comprehensive and broader than previous regulations in this area. In addition to clarifying the existing requirements, the package includes a number of new and additional requirements that will make the prevention of money laundering and terrorist financing more straightforward for both market participants and supervisors. Whilst the new requirements will bring changes for all financial institutions, they will have a greater impact on companies in the fintech sector, which generally provide services cross border. 

Which fintech companies should pay particular attention?

AML/CTF requirements are generally only binding on ‘obliged parties’. Whilst the first EU regulation on this subject limited the list of obliged persons to credit and financial institutions, the list has expanded considerably over time. The new regulation will broaden the scope of regulated parties to include even more companies from the fintech sector in particular. 

The new requirements will include, for example, financial intermediaries, including crowdfunding platforms and mortgage and consumer credit intermediaries, which until now have been excluded from regulation, at least at the EU level. Estonia has already included credit intermediaries as obliged persons at the national level in the past, so this may not have such a significant impact in the Estonian context. At the same time, it is certainly welcoming that the regulation is becoming more harmonised in this respect, as until now Estonian credit intermediaries have been at a disadvantage compared to credit intermediaries in other EU member states. 

However, this is an important change for crowdfunding platforms both in the European Union in general and in Estonia, as they have not been among obliged persons in Estonia either. As a result of the new regulation, crowdfunding platforms will have to apply AML/CFT requirements in full, leading to significant additional compliance costs. As this is a completely new regulated area for crowdfunding platforms, they should bring themselves up to date with the requirements and start applying them in good time. 

In relation to the European Markets in Crypto Assets Regulation (MiCAR), the AML/CTF requirements on the EU level started also to apply to crypto-asset service providers. The AML/CTF package of the European Union will not change this. However, the threshold above which a crypto-asset service provider must apply due diligence measures outside the customer relationship will be significantly reduced – from €10,000 to €1,000. Thus, crypto-asset service providers will have to apply the AML/CTF requirements on a much broader scale than before. 

What are the significant changes concerning due diligence measures?

The new regulation broadly maintains the basic requirements for the application of due diligence measures that have been in effect at EU level until now. However, the new regulation defines the requirements in considerably greater detail. 

Thus, the new regulation contains a list of data and documents that must be collected from the customer. In addition, the updated requirements include the identification of the customer and beneficial owner and the verification of data through more clearly defined sources of information, the assessment of the purpose and nature of the business relationship (which now also applies to occasional transactions) and the continuous monitoring of transactions to ensure that they match the customer’s profile and usual activity. 

One of the most important changes concerns the outsourcing of AML/CTF tasks to service providers. The use of service providers has been widespread among the market participants to fulfil their AML/CFT functions. This is especially the case for fintech companies, which generally do not meet the customer physically when providing financial services digitally. For example, financial institutions have used different solutions (such as post offices or information points) to identify customers, carry out background checks on customers or monitor the transactions of customers. Digital development has also broadened the profile of services that can be purchased from service providers (e.g. identification based on biometric data). However, the new requirements impose strict limits on what tasks can be outsourced to a service provider. For example, outsourcing activities related to the establishment of a business relationship or the assessment of customer risk to a service provider is prohibited. Also, while service providers can continue monitoring customer transactions, the requirements for monitoring transactions must be set by the obliged person. 

For Estonian companies, the new requirements on due diligence measures mean, above all, the need to strengthen internal control procedures and invest in appropriate compliance systems. 

How is enhancing supervision planned?

The establishment of a supervisory institution (AMLA) at the level of the European Union was also part of the AML/CTF package. One of the objectives of the AMLA is direct supervision. However, as only the highest risk credit and financial institutions with significant cross-border activities will be subject to AMLA supervision, it is unlikely that any Estonian fintech company will be included in this group in the coming years. It may, however, include some of the larger fintech companies in the Baltics and Europe that operate cross–border basis. 

In addition to direct supervision, the AMLA aims to strengthen and harmonise supervision across the European Union. However, this will contribute to the harmonisation of supervisory practices and interpretations and views in the Member States, allowing to presume to some degree that supervisory practices in one Member State and in another Member State are similar in a given situation. This will certainly have a positive impact on Estonian fintech companies operating cross–border basis. 

Will the new regulation lead to the long-awaited harmonisation of requirements?

AML rules have been in effect at the EU level for a long time. However, one of the problems with the current rules has been that they have not been directly applicable. Each Member State has therefore implemented them slightly differently in its national law. Another problem has been the generality of the requirements at the EU level. The issue of money laundering prevention and combating money laundering has become particularly topical in the last decade, creating a need for more precise regulation in the market. This need has been addressed by the EU member states themselves through a large number of additional national requirements. However, this has led to a situation where AML/CTF requirements differ significantly across member states  

Different requirements in turn impose restrictions on cross-border activity. Companies in the financial sector, in particular fintech companies, generally offer their services cross-border in other member states as well. However, this means that before entering a new market, it is necessary to familiarise oneself with the specific requirements of that member state. As the differences are sometimes quite significant, this means significant costs for the company. 

The European Union’s new AML/CTF package is certainly a step forward in this area. Most of the regulations in the package are directly applicable in the member states and do not require transposition into national law. This also reduces the possibility of requirements varying from country to country. The new package of regulations is also more detailed than before, which will also contribute to the harmonisation of requirements. The new requirements could therefore lead to some harmonisation. However, this is overshadowed by the fact that nationally imposed requirements in the member states continue to be significantly more precise than the EU requirements. Some differences between member states are therefore inevitable.

The new requirements will become applicable gradually from this year until 2029. In order to ensure compliance, it is important that it is clear to companies at an early stage which requirements will apply at which point in time.

This article was originally published in Estonian on April 10 in the financial news section of Äripäev.

Meeting With

Ellex – IFLR’s Baltic Law Firm of the Year

Ellex has been awarded the title of Baltic Law Firm of the Year at the IFLR Europe Awards 2025. This recognition highlights our commitment to legal excellence and innovation across the Baltic region.

The Baltic Law Firm of the Year award honours outstanding legal achievements, strategic growth, innovation, excellence in client service, and contributions to advancing diversity and inclusion within the legal profession across Europe.

In addition to winning the Baltic Law Firm of the Year award, Ellex is the only Baltic law firm that was shortlisted in the following categories:

• European Law Firm of the Year: Ellex was shortlisted alongside highly reputable EU firms such as Cuatrecasas, Loyens & Loeff, NautaDutilh, Roschier, Schönherr, Uría Menéndez, and Wolf Theiss
• Net-zero Transition Firm: Recognising our efforts in driving sustainable practices and supporting the transition to a net-zero economy
• Financial Services Regulatory Team: Highlighting our expertise in navigating complex financial regulations

We were also shortlisted in two Deal of the Year categories:

• Deal of the Year – Debt and equity-linked: For our work on the Eesti Energia green hybrid bond and the Republic of Estonia EMTN
• Deal of the Year – Loan: For our involvement in the Sunly financing with Rivage Investment, Copenhagen Infrastructure Partners, and Kommunal Landspensjonskasse

The full shortlist is available here. The winners were announced at the awards ceremony held in London on April 3rd, 2025.

We congratulate our incredible team for their hard work and dedication and extend our deepest gratitude to our clients for their trust and continued support.

Find out more about the awards here.

Ellex in Latvia supports the establishment of the Vija Celmiņš Foundation Scholarship for Latvian Artist

The law firm Ellex Klavins proudly announces its support for a significant cultural initiative—the establishment of the Vija Celmiņš Foundation Scholarship, which will provide substantial annual support to contemporary Latvian artists. Each year, a scholarship of USD 30,000 will be awarded to one outstanding Latvian artist, empowering creative freedom and fostering professional growth. 

This initiative is the result of a collaboration between the Latvian National Museum of Art and internationally renowned Latvia-born American artist Vija Celmiņš. The scholarship aims to support professional artists who have demonstrated a consistently high level of artistic quality in their work. 

“It is a great honour for Ellex Klavins to stand alongside the Latvian National Museum of Art and support outstanding initiatives that promote the growth of contemporary art in Latvia. For more than eight years, our collaboration with the museum has been built on a shared belief in the vital role of art shaping our society. We believe that businesses also play a role in enriching the cultural landscape, and the Vija Celmiņš Foundation Scholarship represents an important step towards sustainable patronage in Latvia. Supporting Latvian art and the Museum has always been a core value of our law firm, and we are proud to continue this tradition,”
— Raimonds Slaidiņš, Senior Partner, Ellex Klavins. 

Ellex Klavins’ collaboration with the Latvian National Museum of Art began in 2017, when the firm celebrated its 25th anniversary with a special art initiative. Since then, supporting the arts has become an essential part of the firm’s cultural identity. 

Applications for the scholarship will be open from June 1 to July 31, 2025, and the first scholarship will be awarded in October 2025. Applicants and interested parties are invited to read the full scholarship terms and application form on the Latvian National Museum of Art’s website: www.lnmm.lv 

Ellex strengthens its Banking and Finance team – one of the market’s top AML experts Neringa Mickevičiūtė promoted to partner

Ellex in Lithuania further expands and reinforces its partner team by promoting Neringa Mickevičiūtė from associate partner to partner within its Banking and Finance team. She not only becomes a new partner at the firm but also joins Ieva Dosinaitė as co-head of the Ellex in Lithuania Banking and Finance team.

The change raises Ellex’s total number of partners in the Baltics to 52, securing its market leadership and reinforcing its position as the region’s largest law firm and partnership. Neringa Mickevičiūtė joins Ellex in Lithuania as its 28th partner in Lithuania.

Neringa Mickevičiūtė joined Ellex in Lithuania Banking and Finance team six years ago, focusing on anti-money laundering risk management (AML), international sanctions regulations, anti-corruption, and financial crime prevention. With more than 15 years of legal experience, N. Mickevičiūtė is a certified anti-money laundering and AML audit specialist (CAMS-Audit) with hands-on experience in money laundering risk management for both corporates and financial institutions.

Having around 20 experts, the Ellex in Lithuania Banking and Finance (B&F) team is the biggest B&F team in Lithuania. N. Mickevičiūtė and the team provide advice to a wide range of financial market participants, from systemic banks to leading fintech companies.

“I’m delighted that Neringa, whom I unquestionably consider Lithuania’s best AML expert, has joined our partners’ team. It’s especially rewarding to watch talent develop from within the firm. The Banking and Finance team at Ellex in Lithuania is among the strongest in the Baltics. Until now, it has been led by senior partner Giedrius Stasevičius, one of the market’s most recognized banking and finance experts, together with our banking, finance, and fintech ‘guru’ Ieva Dosinaitė. It’s exciting that this year our team has significantly strengthened, allowing us to start the second quarter with an even stronger team of partners, experts, associate partners, and other legal professionals. This clearly demonstrates that Ellex continues to grow stronger each year in Lithuania,” says Rolandas Valiūnas, Managing Partner at Ellex Valiunas.

From this April, Ellex Valiunas is also increasing its expert and associate partner teams, encouraging internal talent growth.

Joining the team of experts are Ilona Andriušienė, specializing in real estate development, construction, and land use; Arvydas Grušeckas, advising clients on corporate law, mergers and acquisitions; and Nerijus Patlabys, working in employment, migration, and citizenship law.

Associate partners promoted within the firm include Simona Danylė, known for her extensive experience in insolvency, arbitration disputes, and high-value complex litigation; Augustinas Mačionis, recognized for his expertise in corporate law, M&A transactions, inquiry procedure; Jurgita Šamrickienė, experienced in corporate law, bankruptcy, and public procurement litigation; and Dominykas Užkurnys, advising on territorial planning, construction, and real estate law matters.

Marta Cera of Ellex in Latvia elected to the Board of the Latvian Private and Venture Capital Association (LVCA)

Marta Cera, Associate Partner and Co-Head of the Banking & Finance practice group at Ellex in Latvia, has been elected to the Board of the Latvian Private and Venture Capital Association (LVCA)! 

Marta is a highly regarded expert in financial regulatory matters, financing transactions, and capital markets. She has led the development of the firm’s investment funds practice and frequently advises on M&A transactions involving significant financing components. 

LVCA plays an essential role in developing Latvia’s private equity and venture capital landscape by facilitating strategic cooperation between investors, entrepreneurs, and policymakers. Marta’s participation will reinforce this vision through her legal and regulatory expertise. 

Congratulations to Marta and the newly elected LVCA Board! 

Outstanding rankings for Ellex by the Legal 500 EMEA

The highly anticipated Legal 500 Europe, Middle East & Africa (EMEA) 2025 edition, published in March 2025, has once again recognized Ellex among the top-performing law firms in the Baltic region. This year, Ellex has been ranked as a Top-Tier law firm in 26 practice areas and recommended in five additional areas.

Ellex in Estonia, Latvia, and Lithuania have received prestigious Tier 1 rankings in the following practice areas:

• Banking, finance, and capital markets

• Commercial, corporate and M&A

• Dispute resolution

• EU and competition

• Intellectual property

• Real estate and construction

• Shipping & Transport

In addition:

• Tier 1 ranking within Employment for Ellex in Latvia and Lithuania

• Tier 1 ranking within Fintech, Projects and Energy, and TMT (Technology, Media & Telecommunications) areas for Ellex in Lithuania

Ellex experts have received 78 individual rankings in the following categories:

• Hall of fame

• Leading partner

• Next generation partner

• Leading associate

We are delighted to see our rankings continue to rise year after year. This recognition motivates us to push boundaries, refine our expertise, and deliver exceptional service to our clients.

More details on the rankings can be found here.

For 33 years, The Legal 500 has been analysing the capabilities of law firms across the world, with a comprehensive research programme revised and updated every year to bring the most up-to-date vision of the global legal market. The Legal 500 assesses the strengths of law firms in over 150 jurisdictions.

M&A Deal Activity: New Strategies, Emerging Challenges and Growing Opportunities

Despite global economic headwinds, 2024 has marked a stable level of mergers and acquisitions (M&A) activity in Latvia. In fact, this year stands out in terms of deal volume, with 57 publicly announced transactions—the highest ever recorded in Latvia, reflecting a 78% increase compared to the previous year.

At the regional level, the Baltic States saw 231 M&A deals valued over EUR 5 million, bringing total deal value to EUR 2.1 billion—a 76% increase year-on-year. Lithuania continues to lead the region with 41% of all deals, followed by Estonia with 34% and Latvia with 25%. While Latvia lags behind its neighbours in absolute volume, investor activity continues to increase moderately, signalling a stable market trajectory. Importantly, Latvia retains growth potential, while Estonia faces a higher risk of economic recession.

M&A Activity in Latvia and the Baltics

Although the global economy in 2024 has remained turbulent—marked by geopolitical instability, ongoing conflicts in Ukraine and the Middle East, and slower-than-expected interest rate stabilisation—investor confidence in the Baltics has persisted. Seven deals in the Baltics exceeded the EUR 100 million mark this year, double the amount in 2023. The region’s largest deal was the acquisition of Tallink Grupp shares by Infortar from Citigroup Venture Capital for EUR 670 million. In Latvia, the largest publicly disclosed transaction was Latvenergo’s acquisition of wind farms in Lithuania from Estonia’s OU Utilitas for EUR 200 million.

Another key Latvian deal in 2024, although the value was not disclosed, was the merger of two Latvian-born tech companies, Printful and Printify (through their US-based holding companies). Other notable transactions include Elagro Trade’s sale to Lithuania’s agricultural group Akola for EUR 22 million, and the exit of Chinese investors from Stenders, with their controlling interest sold to US private equity firm L Catterton for EUR 14 million.

Growing Interest from International Investors

Most active investors came from the Baltic region, as well as Germany, Finland, the UK, and Sweden. A key deal included Germany’s H&J Brueggen acquiring a 50% stake in Riga-based grain processing company Rigas Dzirnavnieks. Finnish investors completed three deals, including Lightspace Technologies’ partnership with Finnish defence company Summa Defence. UK investors were involved in three deals, while Swedish investors participated in six, mainly within the solar energy sector.

Latvian companies have also become increasingly acquisitive abroad, reaching beyond the Baltics. Balticovo acquired 100% of Estonian firm Tõhela Agro, and Digital Mind acquired Polish tech company EIP Dynamics. SIXT Baltics (Transporent SIA) expanded in Finland by acquiring Veho Rent Oy Ab. This trend reflects a growing appetite among Latvian businesses to use M&A as a strategic tool for international expansion.

In context, while M&A volume across Europe declined by 8% in the past year, the total deal value rose to EUR 439 billion in the first half of 2024, a 31% increase year-on-year.

Key Sectors Driving M&A Activity in Latvia

Technology, Media & Telecommunications (TMT)
TMT has traditionally been one of the most active M&A sectors in the Baltics, but its share in 2024 declined. While TMT accounted for 25% of all deals in 2022, this figure dropped to 12% in 2024, indicating a relative slowdown. Still, foreign investors remain highly interested in early-stage tech ventures—particularly in fintech, SaaS, and e-commerce. Latvian tech startups continue to gain international attention, especially in AI, FinTech, and cybersecurity. Local testing of 5G and 6G technologies is also progressing, with firms strengthening their foothold in innovation.

For instance, Latvia-based Aerones, which develops automated solutions for wind turbine maintenance, raised EUR 28 million from international investors including Future Positive Capital (France). The Latvian government continues to support innovation and startups, helping local firms expand globally with high value-added tech. Trends suggest that Latvian companies are increasingly using innovation and tech development as a driver for international presence.

Energy & Renewables
The energy and renewables sector has become strategically critical in the Baltics. Countries in the region are committed to diversifying their energy supply and reducing external dependency. Latvia’s energy sector is undergoing transformation, including Latvijas Gāze buying back stakes previously held by Russia’s Gazprom. Although the rapid growth seen in 2021-2022 has stabilised, development in this sector continues, fuelled by EU and private investments. Solar and wind projects remain highly attractive, and deeper regional cooperation is helping drive sustainable energy solutions.

Financial Services & FinTech
M&A activity is also accelerating in financial services and FinTech. Local banks and startups are consolidating—for instance, Signet Bank acquired LPB Bank. Pension fund manager Indexo successfully carried out an IPO, raising EUR 7.5 million, followed by an additional EUR 9 million in December. Looking ahead, Latvian FinTech firms are expected to advance innovations in AI and digital identity and payment solutions.

Transport & Logistics
The upcoming AirBaltic IPO is among the most anticipated deals in 2025, poised to attract major investment and strengthen the airline’s position in the regional market. Port development and rail infrastructure projects also continue to enhance Latvia’s role as a key link between Europe and Asia.

Outlook for 2025

M&A activity in 2025 is likely to be driven by digitalisation, distressed asset opportunities, and growing foreign investor interest. A decline in interest rates will make financing more accessible, encouraging more ambitious acquisitions. FinTech consolidation across Europe is expected to intensify, as digitalisation and regulatory changes push smaller firms to seek partners or merge. Latvia is well-positioned to become a regional leader, backed by favourable regulatory initiatives that promote innovation in financial services.

Artificial intelligence and digital identity solutions will gain importance, driving investment in payment services and open banking. Renewable energy is expected to attract continued international investment, supported by EU programmes encouraging funding in defence and security-related industries. Latvia’s government plans to develop its defence sector, potentially creating new investment projects and even state-owned enterprises to strengthen local production capacity.

While the Latvian and Baltic M&A markets remain exposed to global economic shifts, Latvia has proven to be resilient, offering investors a stable and predictable environment. Economic forecasts point to gradual recovery, which could fuel a new wave of deal-making in 2025.

Chambers Europe 2025: 9 practice areas, 56 individual top rankings across the Baltics

Ellex achieves top rankings in Chambers Europe Guide 2025.

On March 20th, 2025, the Chambers Europe Guide 2025 was published. Ellex has been recognized with the highest Band 1 ranking in Corporate/Commercial and Dispute Resolution across the Baltics.

This recognition is a reflection of the invaluable feedback from our clients. We have also been recognized as Band 1 in Intellectual Property (Estonia), Banking & Finance (Estonia, Lithuania), Competition/Antitrust and Employment (Latvia, Lithuania) and Real Estate (Estonia, Latvia).

An additional highlight from this year’s guide is the individual rankings of 56 Ellex experts across various categories, showcasing the depth of talent within our team.

Chambers Europe Guide publishes rankings within the following practice areas: Corporate/Commercial, Competition/Antitrust, Banking & Finance, Dispute Resolution, Employment, Intellectual Property, Real Estate and Tax.

Chambers Europe Guide evaluates leading lawyers and law firms across Europe, providing essential insights and market intelligence for clients and legal professionals. These rankings are based on comprehensive research conducted by a dedicated team of researchers.

For more information on the Chambers Europe Guide 2025 rankings click HERE.

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