The competition watchdog has given the green light to the merger of Australia's two biggest motorhome and campervan rental companies.
Approval was given after the companies agreed to sell a portion of their fleet to a New Zealand competitor.
The NZX-listed THL and the ASX-listed Apollo Tourism and Leisure (ATL) agreed to sell 200 four- to six-berth motorhomes in Apollo's Australian fleet, 110 in its New Zealand fleet, and associated forward bookings to New Zealand's Jucy Group for $NZ45 million.
They will also divest the leases for Apollo's rental branches and depots in Auckland, Alice Springs, Darwin, Hobart and Perth, along with the Apollo Star RV motorhome brand.
Jucy was recently acquired by Sydney-based private equity firm Next Capital, and the Australian Competition and Consumer Commission (ACCC) said on Thursday it was well-placed to be a strong competitor.
"The ACCC is satisfied that the undertaking addresses the competition concerns and considers that Jucy will be able to compete effectively with THL,'' ACCC deputy chair Mick Keogh said.
Auckland-based THL's Australian brands are Maui, Britz and Mighty Camper. It is the largest provider of recreational vehicles in Australia and New Zealand, and the second-largest in North America. It also runs the Kiwi Experience bus company.
Brisbane-based Apollo trades in Australia under the Star RV, Apollo, Cheapa Campa and Hippie Camper brands. Both companies manufacture their own RVs.
If shareholders agree, the merger could be completed by the end of the year. ATL shareholders will receive one THL share for every 3.68 Apollo shares they own if the acquisition goes ahead.
