Expedia has launched a $770 million acquisition bid for Australia-based rival Wotif, but the deal will not go through without an examination form New Zealand.
The nation’s Commerce Commission will examine the deal because both online travel booking sites operate in the nation. The Commission has highlighted several key issues of the deal that could lead to a “substantial lessening of competition,” the watchdog said.
Despite regulatory concerns, Expedia has assured the Commission that following the buyout the market will retain plenty of competition.
US-based Expedia plans to acquire its Australian rival, which has seen falling profits in recent months. According to reports, Wotif founders have recommended to its shareholders that they accept Expedia’s bid.
Full content: New Zealand Herald
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