- Corporate Travel Management’s (CTD) acquisition of Helloworld Travel (HLO) will not be opposed by the ACCC
- The ACCC focussed its review on competition for large corporate and government customers, as this is an area where the companies compete closely
- It said many travel management companies are able to compete for smaller business customers as they have less complex travel requirements
- When consulting market participants, no concerns were expressed over the acquisition due to the large number of travel management companies competing in the industry
- CTD shares closed 0.23 per cent higher today at $21.98 each, while HLO rounded off the day up 2.31 per cent to $2.21
Corporate Travel Management’s (CTM) acquisition of Helloworld Travel (HLO) will not be opposed by the ACCC.
The ACCC focussed its review on the competition for large corporate and government customers, as this is an area where the companies compete closely.
Smaller business customers are likely to have less complex travel requirements, and there are many smaller travel management companies that compete for these customers, according to the ACCC.
When consulting market participants, no concerns were expressed over the acquisition due to the large number of travel management companies competing in the industry.
The ACCC expects these providers to continue strong competition, as well as large overseas-based travel management companies.
ACCC Chair Rod Sims said the range of competitors was key to its decision.
“The ACCC reviewed the proposed acquisition as it combined two of the largest corporate travel management companies in Australia,” he said.
“However, we found that it was unlikely to result in a substantial lessening of competition,” he said. Large travel management customers told us that there are a range of competitors that would be capable of servicing their needs, including Flight Centre and Amex GBT.”
CTD shares closed 0.23 per cent higher today at $21.98 each, while HLO rounded off the day up 2.31 per cent to $2.21.