ACCC CLEARS $1B MANTRA DEAL

THE sale of Gold Coast’s Mantra Group has cleared a major hurdle, with the nation’s competition watchdog saying they will not stand in the way of the billion-dollar deal.

The Australian Competition and Consumer Commission gave its blessing to the proposed acquisition of Mantra by the Accor group, which would join Mantra to one of the world’s largest hotel chains and create an accommodation network of more than 300 properties throughout Australia.

In a statement to the ASX, the ACCC said Accor’s business was mainly focused on hotel-style accommodation with its brands including 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 AccorMantra will still compete with other international and national 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 options nearby for visitors which will provide competition to AccorMantra.”

Accor’s offer of $3.96 in cash per share for the company, has the support of its directors, but still requires approval from shareholders as well as the Foreign Investment Review Board.

Mantra shares closed up 4.5c, or 1.15 per cent at $3.93.