Mergers - Malta

Updated 09/2011

Legal requirements

The main legislation governing mergers in Malta is the Companies Act.

Companies Act

A merger can help raise a company's profile and its competitiveness through increased competition in the EU market. It can allow companies to expand into new markets, develop new products or restructure themselves, reducing production and distribution costs. However, mergers can also be damaging for competition, for instance by creating or strengthening a dominant market player and distorting fair competition.

Types of merger

One may take over a business through simple amalgamation between two or more commercial partnerships, or through amalgamation of companies which may entail a merger by acquisition, or by forming a new company. The Companies Act also provides for a process of takeover, namely where the assets and liability of one or more companies are delivered to another company which is the holder of 90% or more or their shares.

Companies Act in Part VIII, Title II, Chapters I, II and III

Buying an existing company, with an already established structure, can be a good way of expanding your business.

Takeovers — Malta

Programmes

Business incentives

Malta Enterprise provides a number of incentives for foreign direct investors and local enterprises demonstrating commitment towards growth and increase in value added and employment. More specifically, these incentives are designed to support and aid enterprises to expand their business, invest in research and development, innovate their processes, tap into EU funds, develop their international competitiveness potential and to network with other enterprises.