Legal reviews find major risks in Google's Torsboda deal

Two independent law firms have identified significant commercial and legal risks in the proposed sale of Torsboda Industrial Park to Google, days before politicians in Sundsvall and Timrå are due to decide the deal.

Sundsvall's municipal executive office commissioned Carthiel and Litigate to review the current agreement. SVT reports that both firms raised objections to its repurchase clause and found other terms needed tighter drafting.

The reviews say vague commitments should become binding obligations. They also question an unclear regional-employment commitment, whether waste-heat recovery is sufficiently regulated, and an indemnity that could expose the sellers to future claims. Litigate said the material it received did not show how the purchase price had been calculated.

Municipal officials summarised the reviews as identifying terms that could create significant business and legal risks for the sellers and require more analysis or precision.

The municipally owned company says the transaction would transfer all its shares, 214 hectares of land and future infrastructure costs to Google, while Google would repay the company's loans to the owner municipalities and Kommuninvest. The sale is not yet approved.

The two municipal executive boards are scheduled to consider the agreement on Friday, 14 August. The Sundsvall and Timrå councils are due to take it up on Monday, 17 August.

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