AccorHotels acquisition of Mantra Group gets nod from ACCC
The Australian Competition and Consumer Commission (ACCC) announced that it will not oppose the proposed acquisition of Mantra Group Limited (Mantra) by AccorHotels.
Mantra is one of Australiaâ€™s largest hotel and resort marketers and operators with hotels, resorts and serviced apartments across Australia, New Zealand, Indonesia and Hawaii. The acquisition is likely to materialise in the second quarter of 2018.
AccorHotelsâ€™ business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and ibis. Mantraâ€™s focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands.
“The combined Accor-Mantra will still compete with other international and national hotel chains, as well as many independent hotels and accommodation providers,” ACCC chairman, Rod Sims, said. “The combined Accor-Mantra will have a large number of properties in some areas, particularly in certain holiday destinations in Queensland. However, in each case and after a detailed review the ACCC has found that there are also sufficient other options nearby for visitors which will provide competition to Accor-Mantra,” he added.
AccorHotels had announced its decision to buy Mantra Hotel Group for $940 million in November 2017. Once the transaction is concluded, AccorHotels’ portfolio will see an addition of 127 hotels and 16,700 keys. It will be the largest hospitality transaction in Australian history and one of the largest hospitality transactions announced in 2017 globally.