Mergers and Acquisitions: Trends in Rebound
Goldman Sachs’ recent announcement about acquiring a significant stake in Melita plc is a game-changer for Malta’s business scene, according to Simon Schembri, a partner at Ganado Advocates. The move not only boosts the local market but also reflects a global trend of increased mergers and acquisitions activity, which had been quiet for a few years.
Schembri noted that despite economic uncertainties and geopolitical issues, companies are now more open to merging and acquiring to expand into new markets and meet changing demands. Looking ahead to 2025, he predicts a further uptick in M&A activity, especially after recent political events like the UK’s election and President Trump’s re-election.
After a slowdown, primarily due to high interest rates and stricter regulations, Malta is now seeing renewed interest in M&A deals. The landscape is expected to evolve, with EY forecasting a 20% rise in corporate deal volume in 2024 after a 17% drop in the previous year. Technology, especially AI and cybersecurity, will play a significant role in driving these deals as companies adapt to digital transformation.
Despite challenges like regulatory scrutiny and high valuations, certain sectors like life sciences and energy are poised for strong M&A activity. The Goldman Sachs-Melita deal highlights Malta’s appeal as an investment destination and the importance of expert advisors in navigating complex transactions.
The outlook for 2025 is optimistic, with CEOs, private equity firms, and investors bullish on the market due to favorable economic conditions. The resurgence in M&A activity signifies a positive trend for global businesses and offers potential for growth and collaboration in the coming years.
