In legal parlance mergers and acquisitions are referred to as “concentrations” because they concentrate power in fewer hands. In fact, they are governed by merger control regulations due to their potential of creating dominant firms. In this sense, any prohibition in relation to concentrations constitutes an ex ante prevention of anti-competitive effects.

GTG assists its clients gain maximum commercial advantage in transactions such as acquisitions of companies, mergers and joint ventures.

Domestic Law
Under Maltese law this area is regulated by the Control of Concentrations Regulations (CCR) (SL 379.08 of the Laws of Malta), which implements EC Merger Regulation 139/2004. A concentration exists upon:

• The merging of two or more undertakings that were previously independent of each other; or
• The acquisition by one or more undertakings or by one or more persons already controlling at least one undertaking, whether by purchase of securities or assets, by contract or by any other means, of direct or indirect control of the whole or parts of one or more undertakings,

whether occurring in Malta or outside Malta when in the preceding financial year the aggregate turnover in Malta of the undertakings concerned exceeded EUR 2,329,373.40 and each of the undertakings concerned had a turnover in Malta equivalent to at least 10 percent of the combined aggregate turnover of the undertakings concerned; and

• The creation of a joint venture performing on a lasting basis all the functions of an autonomous economic entity, namely a ‘full-function joint venture’, is considered to be a ‘concentration’.

Only those concentrations that might lead to a substantial lessening of competition in the local market or a part thereof are prohibited. Competition law requires that firms proposing to merge gain clearance from the relevant regulatory authority, that is, the Office for Fair Competition. The filing fee is minimal and procedures are fast.