Tourism Holdings Rentals Limited, THL Group (Australia) Pty Ltd and Apollo Tourism & Leisure Ltd

On 29 September 2022, the ACCC announced it had accepted an undertaking (the Undertaking) given by Tourism Holdings Rentals Limited and its subsidiary THL Group (Australia) Pty Ltd (together, THL) and Apollo Tourism & Leisure Ltd (Apollo) pursuant to s 87B of the Competition and Consumer Act 2010 (Cth) in connection with THL’s proposal to acquire 100% of the shares in Apollo (the Proposed Acquisition).

The Undertaking requires the divestment of 200 (around 80%) of the four to six berth motorhomes in Apollo’s Australian rental fleet and associated forward bookings to an ACCC approved purchaser. The Undertaking also includes the divestment of leases for Apollo rental branches and depots in Alice Springs, Darwin, Hobart and Perth, and the Apollo Star RV motorhome brand.

The ACCC has concluded that, in the absence of the Undertaking, the Proposed Acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in the supply of motorised RVs for rent in Australia (Relevant Market).

The Undertaking identifies Star RV Australia Fleet Pty Limited as the purchaser. Star RV Australia Fleet Pty Limited is ultimately owned by Jucy Group (2022) Limited, in which Next Capital Tourism Holdings Pty Ltd holds a majority stake.

Objective of the Undertaking

The objective of the Undertaking is to address the ACCC’s competition concerns as set out in the Undertaking that would otherwise arise as a consequence of the Proposed Acquisition.

The Undertaking aims to achieve this objective by placing obligations on THL and Apollo as set out below:

1. to ensure that the Divestiture Business is sold to an Approved Purchaser that will result in the creation or strengthening of a viable, effective, stand-alone, independent and long term competitor for the Relevant Market;
2. to ensure the purchaser of the Divestiture Business has all the necessary associated assets and rights to compete effectively with THL in the Relevant Market;
3. to maintain the economic viability, marketability, competitiveness and goodwill of the Divestiture Business prior to divestiture; and
4. to provide for the effective oversight of THL’s and Apollo’s compliance with the Undertaking.