Beginning of the consultation on the proposed sale of THL and Apollo
The ACCC is seeking views on a binding undertaking proposal offered by THL and Apollo (ASX:ATL) regarding the proposed acquisition of Apollo by THL.
THL and Apollo are involved in the rental, sale and manufacture of recreational vehicles (RVs), such as motorhomes and motor homes. THL and Apollo are the two largest motorhome rental providers in Australia.
On April 28, 2022, the ACCC issued a Statement of Issues outlining preliminary competition concerns that the proposed acquisition would eliminate THL’s closest and largest competitor in a market where new entry or expansion seems unlikely.
In response to the ACCC’s concerns, THL and Apollo have proposed a court-enforceable undertaking that would require Apollo to divest approximately 80% of its four- to six-berth motorhomes in its Australian rental fleet, which includes motorhomes. newest coaches in the fleet and prior associated reservations.
The proposed commitment also includes the assignment of leases for Apollo rental branches and depots in four locations, as well as the Apollo Star RV motorhome brand.
The undertaking proposes that the divested assets be sold to Jucy, which operates motorhome rental businesses in Australia and New Zealand.
“In evaluating THL & Apollo’s proposed engagement, we will need to be satisfied that it will effectively address our competition concerns and that it will be structured in a practical and efficient manner,” said Vice-President. ACCC President, Mick Keogh.
The ACCC invites submissions on the proposed undertaking by September 13, 2022.
“The release of a public comment undertaking is consistent with our normal practice and should not be interpreted as a signal that the ACCC will ultimately accept the undertaking and not oppose the transaction,” Mr. Keogh.
Further information, including a summary of the commitment offered by THL and Apollo, can be found at: THL Group (Australia) Pty Ltd – Apollo Tourism & Leisure Ltd.
THL is a global tourism company, headquartered in New Zealand and operating a range of tourism-related businesses in Australia, New Zealand, the United States and the United Kingdom. In Australia, its activities include the rental, sale and manufacture of recreational vehicles. THL’s Australian rental brands are Maui, Britz and Mighty Camper.
Apollo is an ASX-listed Australian tourism leisure company, with operations in Australia, New Zealand, Canada, Germany, the UK and Ireland. In Australia, its main businesses include the manufacture, rental, sale and distribution of recreational vehicles. Apollo’s Australian rental brands are Star RV, Apollo, Cheapa Campa and Hippie Camper.
Jucy Group (2020) Ltd is a car rental and motorhome operator in Australia and New Zealand. Next Capital, an independent Australian private equity firm, acquired a majority stake in Jucy on August 12, 2022.
Originally published by ACCC