Australia’s corporate regulator is taking a closer look at Accor Asia Pacific’s proposed $1.3 billion acquisition of its major Australian rival, Mantra Group. The Australian Competition and Consumer Commission (ACCC) said it needs more time to investigate the impact this seminal transaction will have on the Australian accommodation market.

Accor and Mantra are the number one and two Australian accommodation groups with approximately 200 and 125 properties respectively.

The ACCC has indefinitely deferred the original February 1 decision deadline and requested more information from Accor to determine whether or not the deal can proceed.

It has been accepting submissions since the deal was announced last October, 2017.

Among the feedback it requested from interested parties was whether:

  • Accor’s accommodation offerings compete closely with Mantra’s
    accommodation offerings.
  • The impact of the proposed acquisition on the price and quality of
    accommodation offerings.
  • Accor’s property management service and franchise offerings compete closely with Mantra’s offerings.
  • The impact of the proposed acquisition on the price, quality and range of property management and franchise services offered.

“The legal test which the ACCC applies in considering the proposed acquisition is in section 50 of the Competition and Consumer Act 2010,” the ACCC said.

“Section 50 prohibits acquisitions likely to have the effect of substantially lessening competition in a market.”


Share and Enjoy: