The campervan operator Tourism Holdings (THL) is proposing to sell some assets to get its merger with Australian operator Apollo Tourism & Leisure (ATL) over the line.
The proposed tourism firms' merger has raised competition concerns. Photo: Unsplash / Lawton Cook
The proposed takeover of Apollo prompted regulators on both sides of the Tasman to raise concerns, with New Zealand's Commerce Commission worried it would dent competition.
The Australian Competition and Consumer Commission (ACCC) voiced similar concerns to their New Zealand counterpart on the merger, which was first proposed in December last year.
THL announced this morning it had begun discussions with the Commerce Commission and ACCC, seeking clearance on the basis the merged entity divests certain assets in each country.
It said it had entered into exclusive negotiations with Next Capital to sell those assets to Jucy Rentals. THL said Next Capital had recently agreed to acquire a controlling interest in Jucy.
Under the proposal, THL and Apollo have or is offering to divest a significant proportion of Apollo's four to six berth motorhome fleet in New Zealand and Australia.
It's also proposing to sell Apollo's premium Star RV motorhome brand, a proportion of the forward bookings associated with the fleet sold and surplus property leases - on an as needed basis.
"THL continues to strongly believe that the proposed merger will not substantially lessen competition in any jurisdiction.
"However, recognising the concerns raised by the respective regulators and with the intent to conclude the clearance processes in a timely manner, THL and ATL have commenced discussions with both the NZCC and ACCC seeking merger clearance on the basis that the merged entity divests certain assets in each country," THL told the local sharemarket.
The Commerce Commission is seeking submissions from THL, Apollo and other interested parties on whether the proposed divestment would mean that the merger is unlikely to substantially lessen competition.
The commission said it will make a decision on the merger by 2 August, but said the date may be extended.