All-clear for $1.2bn Mantra hotels takeover
The ACCC has finally cleared the $1.2bn Accor takeover of the Mantra Group, with the combined venture to own over 200 hotels across Australia. The deal has been under consideration since October.
It comes after the watchdog delayed its decision and sought more information on the deal, which would see Accor acquire Mantra’s portfolio of more than 125 properties, to establish whether the price and quality of the hotels will be impacted by the proposed acquisition.
French-listed Accor includes brands such as Swissotel and Sofitel while Mantra takes in the Peppers, Break Free and the Deague Art Series hotels.
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In a statement the ACCC says: “Accor’s business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and ibis. Mantra’s focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands.
“The combined Accor-Mantra will still compete with other international and national hotel chains, as well as many independent hotels and accommodation providers,” ACCC Chairman Rod Sims says.
“The combined Accor-Mantra will have a large number of properties in some areas, particularly in certain holiday destinations in Queensland. However, in each case and after a detailed review the ACCC has found that there are also sufficient other options nearby for visitors which will provide competition to Accor-Mantra,” Sims says.
The emergence of online booking services also helped clear the deal.
This article originally appeared on www.theaustralian.com.au/property.