Melita failed with a similar merger in 2017, but is hopeful that a recognition of heightened customer and investment demands will lead to a different decision this time around
The proposed deal would see two of the country’s three telecoms operators combine
On 16 September 2026, in Malta, Epic and Melita announced that they had entered into an agreement to combine their operations. The move will bring together the “complementary strengths” of two of the country’s three fixed and mobile network operators (the other being former incumbent GO), which the parties claim would deliver better services and more choice for consumers, businesses and public sector customers while supporting the long-term development of Malta’s digital infrastructure. Under the agreement, Melita would acquire 100% of the shares of Epic from Monaco Telecom. Until closure of the proposed transaction, Melita and Epic will continue to operate and compete independently, providing continuity for customers without impact on employees of either company.
The parties argue that scale is critical to accelerating fixed and mobile network investment
According to Harald Roesch (CEO, Melita), “investing in the connectivity Malta depends on” is the core motivation behind the combination. In his view, the country needs “serious, sustained investment in its digital infrastructure”, which is harder for smaller operators to fund on their own. The parties argue that demands on operators are growing, with customers seeking world-class speeds, resilient infrastructure and advanced cybersecurity capabilities. They add that the deal would create a more efficient business with the necessary scale to invest for the long term – and to an extent that would be impossible for either firm independently. In turn, the combined operator would be better equipped to accelerate investment in improving network coverage and service quality across both fixed and mobile, as well as to compete more effectively in the market and contribute to Malta’s economic development.
The potential reduction in the number of operators may not be a dealbreaker
Naturally, the proposed acquisition and the intended future investment of the merged entity remain subject to customary regulatory approvals. The Malta Competition and Consumer Affairs Authority (MCCAA) has reportedly stated that the in-house Office for Competition would not automatically block the deal because it would reduce the number of operators from three to two, but would consider whether it would result in a substantial lessening of competition (SLC) in the relevant market. The parties have not provided an indication of when clearance might be granted, while the MCCAA has declined to comment on the likely scope and duration of the forthcoming merger review. GO, however, has voiced concerns over the transaction, stating that it could pose various risks (e.g. for competition, consumer choice, pricing, investment and innovation), adding that it expects the Office to carry out a rigorous, transparent and fully independent assessment of its possible impacts.
The announcement comes at the EC is modernising its approach to merger assessments
A potential Melita/Epic merger is notable for two reasons. Firstly, because a previous attempt by Melita to join forces with Vodafone Malta (Epic’s predecessor) was abandoned in 2017 after the parties were unable to meet the requirements stipulated by the competition authority. Vodafone Malta was later acquired by Monaco Telecom and rebranded as Epic. Secondly, because the announcement comes as the EC is updating its horizontal and non-horizontal merger guidelines, where it has expressed support for scale-enhancing mergers, for example where they increase the ability and incentive of companies to invest. The MCCAA has been quoted as stating that the outcome of any merger investigation depends on the particular facts and evidence relating to the transaction under review, which Melita considers have evolved considerably over the past decade, with fibre, 5G and cybersecurity services all requiring significant investment.
