Mantra sale gets all-clear

AUSTRALIA’S competition regulator has given the allclear to the $1.2 billion sale of Mantra Group to French hotel giant AccorHotel.

Mantra operates six hotels at Port Douglas, three in Cairns and two at Palm Cove when including the Peppers and BreakFree brands under its umbrella.

The Australian Competition and Consumer Commission has announced it will not oppose the sale because the two companies had little business overlap.

It found Accor focused on hotel-style accommodation through its brands Sofitel, Novotel, Mercure and ibis, while the emphasis by Mantra and its brands was on serviced apartments.

“The combined AccorMantra will still compete with other international and na- tional hotel chains, as well as many independent hotels and accommodation providers,” ACCC chairman Rod Sims said.

“The combined AccorMantra 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 AccorMantra.”

The acquisition still requires approval from Mantra shareholders as well as approvals from the Federal Court and the Foreign Investment Review Board. Accor said the sale was likely to materialise in the second half of this year.

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