RV rental mega-merger approved
ACCC gives green light to THL acquiring RV rental rival ApolloThe ACCC has announced that it will not oppose the proposed acquisition of Apollo Tourism by THL, after accepting a court-enforceable undertaking that requires Apollo to sell off most of its newest motorhome fleet.
“THL and Apollo are the two largest suppliers of rental RVs in Australia and are each other’s closest competitor in a market where smaller rivals and potential entrants appear to face challenges achieving comparable scale,” ACCC Deputy Chair Mick Keogh said.
The consumer watchdog raised concerns earlier this year that the removal of THL’s largest and closest competitor would lead to consumers paying more to rent RVs or receive lower quality products and service.
To address the ACCC’s concerns, THL and Apollo subsequently offered a court-enforceable undertaking to divest 200 (around 80 per cent) of the four to six-berth motorhomes in Apollo’s Australian rental fleet and associated forward bookings to an ACCC approved purchaser.
The undertaking also includes the divestment of leases for Apollo rental branches and depots in Alice Springs, Darwin, Hobart and Perth, and the Apollo Star RV motorhome brand.
The ACCC has given the go-ahead for Jucy which currently operates campervan rental businesses in Australia and New Zealand and was recently acquired by Next Capital, to purchase the Apollo assets.
“The ACCC is satisfied that the undertaking addresses the competition concerns and considers that Jucy will be able to compete effectively with THL,” Keogh said.
ASX-listed Apollo Tourism told shareholders that if all other 'boxes' are ticked it expects the merger to be completed before the end of 2022.
"The merger remains subject to the satisfaction of other conditions including refinancing by THL, approval from the Australian Foreign Investment Review Board and requisite approval from ATL shareholders and the Supreme Court of Queensland," the company said in a statement.
Apollo shareholders are set to own 25 per cent of the combined group when the merger goes through. Brands currently operated by Tourism Holdings in Australia include Britz, Maui, and Mighty Camper, whereas Apollo Tourism is behind the Star RV, Cheapa Campa, Hippie Camper and Apollo rental brands.
Related: Rental RV big guns to join forces
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