The ACCC will not oppose the proposed acquisition of Apollo (ASX:ATL) by THL, after accepting a court-enforceable undertaking that requires Apollo to divest a large proportion of its newest motorhome fleet.
THL and Apollo are involved in the rental, sale and manufacture of recreational vehicles (RVs), such as motorhomes and campervans.
"THL and Apollo are the two largest suppliers of rental RVs in
The ACCC released a Statement of Issues on
The removal of THL's largest and closest competitor raised concerns that consumers would pay 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 ACCC conducted public consultation on the undertaking on
The undertaking also includes the divestment of leases for Apollo rental branches and depots in
THL and Apollo proposed Jucy as the up-front purchaser of the divested assets. Jucy currently operates campervan rental businesses in
Jucy was recently acquired by
"The ACCC is satisfied that the undertaking addresses the competition concerns and considers that Jucy will be able to compete effectively with THL,"
Further information, including the undertaking accepted by the ACCC, can be found on the ACCC's public register:
Note to editors
The ACCC will issue a public competition assessment shortly explaining its decision in greater detail.
Background
THL is a global tourism company, with headquarters in
Apollo is an Australian tourism leisure company listed on the ASX, with operations in
A motorhome 'berth' refers to a sleeping space available in a motor home. Release number: 138/22ACCC Infocentre:
Use this form to make a general enquiry. Media enquiries: Media Team - 1300 138 917, media@accc.gov.au
.
(C) 2022 M2 COMMUNICATIONS, source