THL’s Aussie merger deal a step closer

Tourism Holdings and Apollo Tourism & Leisure have finally been given the go-ahead by the New Zealand Commerce Commission for their proposed merger.

The regulator said it had granted clearance for Tourism Holdings (THL) to acquire 100 per cent of the shares in Apollo.

However, the competition watchdog said the clearance was subject to an undertaking from THL and Apollo to sell some of Apollo’s assets to budget campervan company Jucy Rentals for $45 million.

Earlier yesterday, THL had told the NZX that it reached an agreement with Apollo to sell $45m of its assets including 110 motorhomes from Apollo’s New Zealand rental fleet and 200 motorhomes in Australia.

Alongside the motorhomes, Apollo’s Star RV motorhome brand and property leases for surplus depots in Auckland, Perth, Alice Springs, Darwin and Hobart were included in the deal.

Commission deputy chair Sue Begg said the regulator raised concerns about the proposed acquisition in its previous statement of unresolved issues around the lessen- ing of competition in the supply of motorhome rental services.

But Begg said the $45m deal with Jucy “satisfied” the regulator that the merger was unlikely to substantially lessen competition.

In Australia, the merger still needs clearance from regulators, Apollo shareholders and the Supreme Court of Queensland.

Tourism Holdings’ shares were placed in a trading halt ahead of the decision, and after trading resumed, climbed 10c to close at $2.75.