The US$1.2 billion acquisition of Mantra Group by European hotel giant Accor to create Australia’s dominant hotel and resort operator is expected to be completed by May after the Australian Competition and Consumer Commission (ACCC) said it would not oppose the takeover.
In making its decision not to oppose the merger of the country’s two biggest accommodation providers, the competition watchdog highlighted the lack of market overlap between the two businesses.
The ACCC said Accor’s business was “mainly focused on hotel-style accommodation” through brands like Sofitel, Novotel and Mercure while “Mantra’s focus is on serviced apartments” with brands including Breakfree, Peppers and the recently acquired Art Series hotels.
The growth of the unregulated, “shadow” accommodation sector, led by Airbnb, which has intensified competition and made it harder for hotels to lift their rates during peak periods, was also a factor in the ACCC’s decision to allow the deal to proceed.
Full Content: The Australian