Use the Lexology Navigator tool to compare the answers in the article with those from 20+ other jurisdictions.
Under what circumstances is a transaction caught by the legislation? According to the regulations, the term ‘concentration’ encompasses the following transactions:
- mergers between two or more previously independent undertakings;
- the acquisition by one or more undertakings of direct or indirect control of the whole or part of one or more other undertakings; and
- full-function joint ventures.
Such concentrations must lead to:
- a lasting change of control, with reference to the possibility of exercising a decisive influence on an undertaking through the ownership of or the right to use all or part of the assets of that undertaking; or
- rights or contracts that confer decisive influence on the composition, voting or decisions of the organs of an undertaking.
Do thresholds apply to determine when a transaction is caught by the legislation? Yes – in addition to the control criterion, the application of the regulations is determined based on the turnover of the parties concerned. A concentration is deemed to arise where, in the preceding financial year:
the aggregate turnover in Malta of the undertakings concerned exceeded €2,329,373.40; and each of the undertakings concerned had a turnover in Malta equivalent to at least 10% of the combined aggregate turnover.
Click here to read the full article.