Tough times tend to bring about a wave of market consolidation, and the situation is no different in Malta. By all accounts, 2023 was a rough year for business, as rising costs and a troubled geopolitical environment threw business operations in disarray. For some companies, however, this represented nothing short of a great opportunity to grow their business through strategic acquisitions and mergers.
Below, we list some of the most noteworthy merger and acquisition activity taking place in Malta throughout 2023. From iGaming to healthcare, logistics to furniture, these deals have taken place in a variety of industries, with each bringing particular benefits and advantages to the parties involved.
1. Innovation Labs + KaFe Rocks
Having completed the purchase of AskGamblers earlier in the year, GiG sought to further consolidate its position in the affiliate market through the acquisition of KaFe Rocks via its Innovation Labs subsidiary. The integration of KaFe Rocks into GiG Media is expected to lead to strong cost savings due to the synergies between the two St Julian’s-based companies. Meanwhile, KaFe Rocks’ major presence in the fast-growing US market through Time2play.com and USCasinos.com will be of benefit to GiG, cementing its position as a dominant lead generator within the lucrative online casino market. The deal is currently still pending authorisation from competition authorities.
2. LeoVegas + Push Gaming
In its first major purchase after being acquired by MGM Resorts, LeoVegas bought out Push Gaming, another Malta-based iGaming operator. The move is intended to boost LeoVegas’s game development capabilities and add key proprietary technologies essential for continued international growth. Push Gaming and its team of over 100 employees will remain an independent unit, and its games will remain available through major operators worldwide.
3. Prohealth + TrioMed
Prohealth’s acquisition of TrioMed in 2023 was a major step in the former’s expansion in the medical devices market. Known as an importer and distributor of pharmaceuticals, dermo-cosmetics and dental hygiene products, including leading brands like La Roche-Posay, Vichy and KIN, Prohealth has now provided TrioMed with the financial, organisation and logistical backing to continue growing and improving its service. Onboarding TrioMed, which represents brands like Philips Healthcare, Hologic and Linet meant taking on years of experience in sales, installation and servicing of medical equipment and technology in Malta, ranging from ultrasounds, AEDs and hospital beds, to ‘heavier’ stuff like X-ray machines, CT scanners, MRIs, and diagnostic IT solutions.
TrioMed outgoing Managing Director Alex Vella, Prohealth Medical Devices Business Unit Manager Mark Bondin and Prohealth CEO Peter Apap
4. Joinwell + FXB
In what was likely the biggest merger of 2023, major players Joinwell and FXB, including the latter’s subsidiaries Econetique and The Bath Concept, joined to offer a one-stop-shop experience to their business and retail customers. While Joinwell is a recognised leader in kitchens, bedrooms, living rooms and other imported furniture, FXB is more active in contract furniture manufacturing, bespoke and office, with a presence in air-conditioning, renewable energy, bathrooms and tiles. The businesses thus had limited overlap, with the combined offering positioning the merged company as a full-service provider.
Iro Bezzina (FXB), Sebastian de Giorgio (Joinwell), Joseph Borg (FXB), Nikolai de Giorgio (Joinwell), Ivan Caruana (FXB)caption
5. BG Consumer & Healthcare + Mortar Limited
In another move for consolidation in the healthcare space, BG Consumer & Healthcare Ltd, part of the Francis Busuttil & Sons group, has announced its intention to acquire Mortar Limited, which has shares in Alfred Gera & Sons, Consolidated Packaging, MMV, and Melita Retailers. The Mortar Limited companies are involved in the importation and distribution of pharmaceuticals and personal care and food products, and the operation of pharmacies. The deal is currently awaiting authorisation from the MCCAA.
6. PB Group + Thomas Smith
Malta-based regional logistics firm PB Group, providing highly specialised engineering solutions in the water and energy sectors, consolidated its market position through the acquisition of the Thomas Smith group of companies, involved in shipping and insurance.
7. Lidl + Scotts
The sale of Scott’s Supermarkets’ outlets to LIDL was originally announced in early 2021, but the discount retailer was blocked from taking over the Zabbar supermarket by the Malta Competition and Consumer Affairs Authority after it warned of “a substantial lessening of competition in the area.”
However, the deal is now back on, and is currently being reviewed by the authority. Could the second time round be the charm in LIDL’s attempts to expand its footprint in the south?
Scotts Zabbar / Google Street View
8. Gozo Fast Ferries
This one’s not technically a merger, but nonetheless represents a significant shift in the service offered to passengers between Valletta and Gozo. After a number of complaints about the timetable offered, and the Government stepping in to guarantee a minimum level of crossings, the two fast ferry operators agreed to offer a unified service to consumers. The agreement was particularly notable given that the two companies had just been involved in acrimonious competition regarding Sicily, where the Zammit Tabonas (of Captain Morgan and Fortina fame) had attempted to begin a new route to Augusta through the Ponte brand. The service was first delayed due to legal wrangling between Virtu and Ponte to use the same departure slot, and was plagued with problems and eventually retired after just a few months. Nonetheless, the bad blood between the two firms does not seem to have lasted long.
9. D-Marin + Marina di Valletta
Malta’s newest marina is already set for a change in ownership as the D-Marin Group, part of the global CVC Fund VIII, seeks to take a majority stake in Marina di Valletta, following a partnership agreement with Azimut Benetti Group, currently the largest shareholder in the marina. Other shareholders include Esprit Yachting, the local representative for the luxury yacht manufacturer, Tal-Magħtab Construction and Arrigo Group of Hotels. Joinwell seems to have divested of its shareholding in 2022. The expansion of D-Marin Group, which currently already owns 20 marinas in the Mediterranean, is aimed at growing nautical tourism in the region.
10. PhishDeck + ThreatAssure
In what may be the biggest Maltese start-up story of the year, local phishing simulation provider PhishDeck was acquired by the UK security awareness company ThreatAssure, which took a significant equity stake in the start-up born from an elevator conversation back in 2015. The acquisition has meant a change in leadership, with three of the four original co-founders leaving the company and the other one retaining a consultancy role to assist in the smooth integration of PhishDeck’s technology into ThreatAssure’s existing platforms.
11. Hili Ventures + Tigné Mall
Hili Ventures made headlines in late 2023 when it announced that it had bought the shares owned by HSBC Malta in Tigné Mall plc, the operator of The Point Shopping Mall. This was followed by news of further acquisition of BOV’s shares, giving Hili Ventures a close to 32 per cent stake in the popular Sliema shopping destination – the second largest, after MAPFRE MSV Life. While Hili has long been in the real estate business in Eastern Europe, the purchase represented its first such investment locally.
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