Tourism Holdings and Apollo Tourism & Leisure want to merge to create a stronger motorhome business after suffering during the pandemic.
Motorhome company Tourism Holdings and its Australian merger partner Apollo Tourism & Leisure have agreed to sell some assets to rival Jucy Group for $45 million to get the deal approved by regulators.
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.
But the New Zealand Commerce Commission and the Australian Competition and Consumer Commission fear the merger could harm competition.
* Tourism Holdings to merge with Australia’s Apollo to create a stronger global motorhome group
* Christchurch-based motorhome company closes due to Covid-19
* Tourism Holdings focuses on motorhome sales as rentals are impacted by Covid
To allay those concerns, the merger partners said they would sell 110 four-to-six-berth motorhomes from Apollo’s New Zealand rental fleet and 200 four-to-six-berth motorhomes from the fleet. rental of Apollo in Australia, including part of the term reservations. associated with this fleet.
They would also sell Apollo’s Star RV brand of motorhomes and property leases for surplus Apollo rental depots in Auckland, Perth, Alice Springs, Darwin and Hobart.
The Waitaki Lakes region was busy with campers rushing to set up their trailers at their favorite weekend campsites.
The merged group had agreed to supply 40 Jucy motorhomes in calendar year 2023 with an option for an additional 40 motorhomes in 2024 in Australia and New Zealand.
It would also introduce Jucy to new wholesalers who market motorhomes under the Star RV brand and provide transition services to Jucy.
The agreements are subject to the approval of the agreement by competition regulators and the entry into force of the scheme of arrangement allowing the merger.
Shares of Tourism Holdings were halted on Friday as the company expected the Commerce Commission to announce its decision on the merger. Australia’s competition regulator is expected to issue its decision next Thursday.