Accor Free To Complete Mantra Acquisition
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French hotel giant, Accor has been cleared by regulators to complete its near $1.2 billion offer for local hotel group Mantra.
The Australian Competition and Consumer Commission (ACCC) said on Thursday (https://www.accc.gov.au/media-release/accc-will-not-oppose-accors-acquisition-of-mantra) that it will not oppose the proposed acquisition of Mantra Group as it operates in a different part of the market to Accor.
The offer is $3.96 cash per share which values Mantra at $1.182 billion.
''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 ACCC chairman Rod Sims said in yesterday’s statement.
''The combined Accor-Mantra will still compete with other international and national chains, as well as many independent hotel and accommodation providers.''
Mr Sims said the combined group will have a large number of properties in some area, particularly in holiday destinations such as Queensland. But, after a detailed review by the ACCC it does not see any overlap issues.
“While being part of a national or multi-regional network or chain may provide some advantages, the ACCC said, it “ ound that competition occurred predominantly at a local level and that multi-locational arrangements between specific hotel chains and corporate customers are generally not exclusive."
The ACCC also found that the combined firm would continue to face competition from a number of alternative providers, including other international and national hotel chains as well as many independent hotels and accommodation providers.
An ons hotel management services, the ACCC thinks that the combined firm will continue to face competition from a number of alternative providers, including other national and international hotel chains.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.