Apollo finally on road to merger with THL

Apollo Tourism & Leisure and Tourism Holdings Limited (THL) have this week driven through their biggest barrier yet, with The Australian Competition and Consumer Commission (ACCC) giving the proposed merger a preliminary green light.

FRESH from receiving the tick of approval from the NZ competition regulator last week, a revised agreement pledging to jettison strategic assets to allay competition concerns looks to have done the trick.

“The ACCC will not oppose the proposed acquisition of Apollo by THL after accepting a court-enforceable undertaking that requires Apollo to divest a large proportion of its newest motorhome fleet,” the consumer watchdog said.

The companies truck a major speed hump when they initially proposed the merger, with the ACCC taking issue with the fact 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 face challenges to compete.

Compromise has come in the form of Apollo going ahead with its sale of assets to Jucy, some rental branches and the Star RV brand, while THL will need to some refinancing.

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