Commerce Commission approves Tourism Holdings merger with Apollo

Tourism Holdings and Apollo Tourism & Leisure want to merge to create a stronger motorhome business after suffering during the pandemic.

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Tourism Holdings and Apollo Tourism & Leisure want to merge to create a stronger motorhome business after suffering during the pandemic.

The Commerce Commission has approved a merger between motorhome company Tourism Holdings and its Australian counterpart Apollo Tourism & Leisure after agreeing to sell some assets.

Tourism Holdings and Apollo announced plans to merge in December last year, to create a larger global motorhome business that could better weather the disruptions of the Covid-19 pandemic.

The pandemic has been difficult for RV rental companies that rely on international tourists for most of their business, with Tourism Holdings previously describing it as the biggest challenge in its history. The combination of the two companies would allow them to reduce their fleets, pay off their debts and operate more efficiently together.

The commission cleared the merger on Friday after Tourism Holdings and Apollo agreed to sell some assets to rival Jucy Group for $45 million, easing the regulator’s competition concerns.

READ MORE:
* Tourism Holdings to merge with Australia’s Apollo to create a stronger global motorhome group
* Christchurch-based motorhome company closes due to Covid-19
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Commission Vice-President Sue Begg said the regulator was concerned the deal would see Tourism Holdings increase its already strong position in motorhome hire, particularly in the motorhome segment. four to six berth vans in the domestic motorhome rental market, and that other competitors or potential entrants would not provide sufficient competition to prevent the company from raising prices or lowering quality .

However, the sale of motorhomes, the Star RV brand and other assets to Jucy, combined with related deals, convinced the commission that the deal was unlikely to significantly lessen competition, she said. declared.

JOHN BISSET/STUFF

The Waitaki Lakes region was busy with campers rushing to set up their trailers at their favorite weekend campsites.

The clearance is subject to the divestiture by Tourism Holdings and Apollo of 110 of Apollo’s existing four to six berth motorhome rental fleet in New Zealand, Apollo’s Star RV brand, reservations of term motorhome rental (relating to the fleet being divested), lease at an existing Apollo depot and other assets at Jucy.

Tourism Holdings chief executive Grant Webster said the move was an important step towards a successful merger with Apollo.

“We are focused on satisfying the remaining conditions of the merger in a timely manner with the intention of closing the transaction before the end of 2022,” he said.

The merger remains subject to refinancing, clearance from the Australian Competition and Consumer Commission and approvals from the Australian Foreign Investment Review Board, Apollo shareholders and the Supreme Court of Queensland.

Australia’s competition regulator is expected to issue its decision next Thursday.

Shares of Tourism Holdings rose 1.9% to $2.70 after the trading halt was lifted following the Commerce Commission announcement.

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