Australian competition regulator approves merger of campervan companies Tourism Holdings and Apollo
Thursday, 29 September 2022
Australia’s competition regulator has followed its New Zealand counterpart in approving a merger between rival campervan companies Tourism Holdings and Apollo Tourism & Leisure.
The Australian Competition & Consumer Commission said on Thursday it will not oppose the merger after the companies agreed to sell some assets to rival Jucy for $45 million. New Zealand’s Commerce Commission approved the merger last Friday.
Tourism Holdings chairperson Cathy Quinn said while the companies still have to satisfy some other conditions for the merger to go ahead, clearance from the New Zealand and Australian competition regulators were the most significant.
“We now have much greater confidence that the merger will proceed,” she said.
**READ MORE:
* Tourism Holdings to merge with Australia's Apollo to create a stronger global campervan group
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* Jucy rental car and campervan collapse left $44m debt to ASB
**
Shares in Tourism Holdings rose 2.2% to $2.79 after a trading halt was lifted on the NZX. Apollo rose 12% to 72.5 Australian cents on the ASX.
Tourism Holdings is the world’s largest provider of holiday vehicles for rent and sale, operating the Maui, Britz and Mighty rental brands in New Zealand and Australia, Road Bear and El Monte in the United States, and with a 49% stake in Just Go in the United Kingdom.
It owns New Zealand’s largest campervan manufacturer, Action Manufacturing, and retails its Kea range through its RV Supercentres where it also sells used campers from its rental fleet.
Merging with its largest rival would enable Tourism Holdings to reduce costs and operate more efficiently. Apollo has operations in New Zealand, Australia, Canada, Germany, the UK and Ireland. Its rental brands are Star RV, Apollo, Cheapa Campa and Hippie Camper.
As part of the deal agreed with regulators, the companies have agreed to sell Apollo’s premium Star RV brand and about 80% of its four to six berth motorhome rentals in Australia and the associated bookings, as well as some leases for Apollo's rental branches and depots.
The Australian regulator said Jucy’s owner, Australian private equity group Next Capital, was well placed, with Jucy’s existing fleet and the divested Apollo assets, to ensure Jucy was a strong competitor in the campervan rental market. Jucy’s current fleet is mostly smaller campervans.
The proposed merger comes after Tourism Holdings previously acquired its two main rivals Kea and United Rentals in 2012, which elevated it to the largest operator.
Quinn expects the merger to be completed before the end of this calendar year.
It remains conditional on refinancing, approval from the Australian Foreign Investment Review Board, Apollo shareholders and the Supreme Court of Queensland.