A proposed merger between communication companies Vodafone and Melita did not need to be approved by Brussels, the competition authority said.
The merger is being scrutinised by the Malta Competition and Consumer Affairs Authority, a regulator. It has notified the EU of the proposed merger but a spokeswoman said the deal did not have to be cleared by the European Commission.
“The Commission only examines larger mergers with an EU dimension, which reach certain turnover thresholds,” she said.
The [competition] office is gathering the information including expert advice that it deems necessary for its evaluation and assessment of the proposed merger and technical consultants are being contacted to give their expert opinion when required
Still, even though no formal consultation is required, the MCCAA has communicated with the EU about the proposed merger.
Vodafone and Melita announced the planned merger last May. It will result in a combined company, which will be 51 per cent owned by existing Melita shareholders Apax Partners and Fortino Capital.
The merged company is expected to operate under the Vodafone brand.
The deal must be approved by the MCCAA before it can be finalised, with both companies expecting the transaction to close in the second half of the year.
The spokeswoman for the MCCAA said the merger plans and feedback received from various stakeholders were being evaluated.
“The [competition] office is gathering the information including expert advice that it deems necessary for its evaluation and assessment of the proposed merger and technical consultants are being contacted to give their expert opinion when required,” she said.
The MCCAA will be publishing the “main content” of its decision in due course, she added, while taking into consideration the “legitimate interest of the undertakings in the protection of their business secrets”.
If approved, the merger will narrow competition for mobile phone services down to just two companies.
In the wake of the merger announcement, competitor company GO had insisted the regulator should ensure a fair playing field for the benefit of consumers
Vodafone Malta was valued at €208 million and Melita at €298 million as part of the deal, with the combined company assuming net debt of approximately €345 million.
Vodafone will receive an estimated cash payment of €120 million while Melita’s shareholders will receive an estimated cash payment of €33 million, representatives for the newly-formed company said when announcing the deal two months ago.
Melita CEO Harald Rösch would take over as the new company’s chief executive while Vodafone Malta CFO Caroline Farrugia would become CFO.