ACCC pours cold water on Kiwi rival’s plan for Apollo takeover
The takeover of Brisbane tourism company Apollo has hit a hurdle with the competition watchdog expressing preliminary concerns about the deal.
The ACCC has raised concerns over the Apollo takeover
The Australian Competition and Consumer Commission said the acquisition of Apollo by the New Zealand based THL would remove competition because both companies were involved in the rental, sale and manufacture of recreational vehicles, like motorhomes and campervans.
The ACCC said the acquisition of Apollo would remove THL’s closest and largest competitor for motorised RV rentals in Australia. Market feedback indicated that THL and Apollo were the two largest suppliers in the market.
ACCC commissioner Stephen Ridgeway said the market had also told the commission that there was a lack of scale in the rental market and there was unlikely to be a competitor that could fill the space left by Apollo.
Under the takeover, THL would also end up with a minority share in peer-to-peer platform Camplify and the ACCC was now examining how companies in this part of the market compete with RV rentals.
The peer-to-peer companies allow individuals to rent out their RV.
“Our review to date has found that peer-to-peer platforms do not currently provide a constraint in traditional RV rental suppliers,” Ridgeway said.
“As a result of market feedback so far, we are concerned that consumers may end up paying more to rent RVs or receive lower quality and service as a result of the proposed acquisition.”
