Vodafone announced that it's abandoned a proposed merger of its Malta unit with local cable operator Melita. Vodafone and Melita's owners Apax and Fortino Capital were unable to agree the conditions needed to satisfy the Malta Competition and Consumer Affairs Authority concerns about the deal, they said.
The merger was first agreed in May. The combined company was expected to be in a stronger position to compete with Go. The proposed merger follows the start of Vodafone Malta offering fixed internet and telephony for homes and small offices in September 2016 and is line with Vodafone's group strategy of expanding in fixed, and particularly cable, markets.
In July, the Malta regulator started an in-depth investigation of the transaction, a move welcomed by rival operator Go. If approved, the merger would have essentially reduced Malta to a duopoly.
Melita's shareholders said in a statement that they would continue with their strategy for the operator. This includes a quick upgrade of Melita’s mobile network to the latest generation 4.5G standards and a progressive nationwide roll-out of the recently launched Gigabit Internet service.
