The Australian Competition and Consumer Commission (ACCC) has given Accor the green light for its $1.2 billion acquisition of Mantra Group, stating that they will not oppose the takeover.
''Accor’s business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and Ibis. Mantra's focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands," ACCC chairman Rod Sims said.
Under the terms of the agreement AccorHotels offered AUD3.96 (US $3) for each Mantra share including any potential special dividend.
Sébastien Bazin, chairman and CEO of AccorHotels said, “We are delighted to have come to an agreement to acquire the Mantra Group. This operation will underpin our long-term growth in the Asia Pacific region. Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to complement our successful hotel portfolio in Australia. We are confident that the transaction terms are attractive for shareholders of both groups”.
Mantra is one of Australia’s largest hotel and resort marketers and operators with 127 properties and over 20,000 rooms in hotels, resorts and serviced apartments across Australia, New Zealand, Indonesia and Hawaii.
This is the second-largest deal in Australia’s hotel sector.