Dometic swallows Aircommand

A merger of two of the biggest suppliers of RV air-conditioners Down Under has been given the thumbs-up by Australia’s competition regulator.

In September last year Swedish RV accessories giant Dometic bought American-based Atwood Mobile Products, which owns Aircommand Australia among other brands and products.

As Aircommand and Dometic are the largest and second largest suppliers of RV air-conditioning systems in Australia, with a combined market share of over 75 per cent, the deal quickly caught the attention of the Australian Competition and Consumer Commission (ACCC).

But after taking “into account concerns expressed by some market participants about the loss of competition between these companies” the ACCC announced this month it will not oppose the acquisition.

Reasons cited include Dometic’s market share declining in recent years, and market leaders such as Jayco that have the buying power to use brands other than the top-two if required.

“The ACCC determined that, following the acquisition, Dometic and Aircommand would face competition from existing competitors, Coleman, Denso and Gree, which are expanding their product offering, as well as potential new entrants,” ACCC Commissioner Dr Jill Walker said.

“The ACCC also found that some customers would have the ability to bypass Dometic if it seeks to increase prices or lower service after the merger,” she said.

While the deal is a big plus for Dometic in Australia, where almost every caravan and motorhome sold now has an air-con unit fitted, more importantly it allows the global Swedish company to expand its RV and boat components range with Atwood’s water heater, ventilation technology and furnace products.

Founded in 1909, Elkhart-based Atwood bought the South Australian-based mobile air-conditioning maker Aircommand in July 2013.