News and developments
Introduction to Mergers and Acquisitions
There are various considerations as to why proceeding with a merger may result as quite useful. A change in corporate structure through merger may be considered to expand or consolidate one’s business structure. This may result in further efficiency through a consolidated infrastructure and strategic financial planning that maximises profit and minimizes avoidable expenses.
In Malta, mergers and acquisitions are thoroughly considered in order to affect productive tax consolidation and benefits and this through an ancillary beneficial tax regime. It is valid to note that Malta’s mergers and acquisitions legal framework became significantly relevant following Malta’s accession to the European Union in 2004 wherein the cross-border element of corporate structures extended through multiple member states became a valid additional notion. Indeed, the legal framework currently allows for the traditional two-fold layers of amalgamation of companies being:
- Merger by acquisition; and
- Merger by formation of a new company.