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In late 2021, Tourism Holdings Limited (“THL”) and its wholly owned subsidiary THL Group (Australia) Pty Ltd, announced mutually agreed plans to acquire Apollo Tourism & Leisure Ltd (“Apollo”).

However, a statement of issues published by the Australian Competition and Consumer Commission (“ACCC”) in late April flagged concerns that the proposed deal would have a negative impact on competition in the motorised recreational vehicle (particularly rental) market in Australia.

THL is a New Zealand based global tourism company operating a range of tourism related businesses in Australia, New Zealand, the USA and the UK. In Australia, its operations include RV (Recreational Vehicle) rental, sales, and manufacturing. THL’s Australian rental brands are Maui, Britz and Mighty Camper.

Apollo is an Australian based tourism leisure company with operations in Australia, New Zealand, Canada, Germany, the UK and Ireland. In Australia its principal activities include the manufacture, rental, sale, and distribution of RVs. Apollo’s Australian rental brands are Star RV, Apollo, Cheapa Campa and Hippie Camper.

Both companies operate under the same business model. They manufacture their own motorised RVs, and then rent them out under their various brand names. At the end of their rental lifespan, the vehicles are then sold by the companies through their own sales channels or through dealers.

While there are seven other operators in the RV rental supply market, only two of these operators offer motorhomes as well as caravans. The ACCC also acknowledges peer to peer marketplaces which allow private RV owners to rent out their vehicles – the leading marketplace in Australia being Camplify. Of particular concern to the ACCC, Apollo has a 17.8% shareholding in Camplify, and (dependant on another deal) THL is due a 7% shareholding in the coming months.

Broadly, the ACCC is concerned about the competition implications of the consolidation of Australia’s two largest suppliers of rental RVs given that the proposed acquisition would remove THL’s closest and largest competitor. In particular, the statement of issues notes that other suppliers lack the scale to present the same competitive constraint that is currently imposed on THL by Apollo. Additionally, the ACCC is concerned that the merged entity’s shareholding in Camplify may dampen Camplify’s incentive and ability constrain the merged entity.

There is also no current prospect of new entry or expansion from another provider that could compensate for this loss of competition. While small scale entry may be achievable, the ACCC considers that largescale entry or expansion is less likely due to the height of barriers to entry in this market.

The ACCC has invited submissions in response to the statement of issues and intends to make a final decision by 21 July 2022.

The Full ACCC Statement Of Issues Is Available Here.

WRITTEN BY

For further information, please contact:

Thomas Jones – Bird & Bird,
thomas.jones@twobirds.com

As a partner in our Competition and Commercial Groups in Sydney, and co-head of the Technology and Communications Group in Australia, I specialise in cross-jurisdictional regulatory issues in technology and communications.

When advising clients, my work combines excellent, technical legal knowledge with innovative, creative approaches.

I enjoy working for Bird & Bird because there are some phenomenally clever lawyers here, working on some of the most challenging international matters in technology and communications for innovative organisations and exciting clients. We work together as one cross-border team, sharing ideas and expertise, to deliver entirely ground-breaking projects for our wide array of clients.

My expertise in technology and communications, particularly on the regulatory side, covers exciting new areas such as 5G and LEO satellites as well as the full range of existing services. Where law is just evolving or technologies are novel, I use my creative problem-solving skills to plot a trajectory with my clients to achieve their desired outcomes. Clients enjoy working with me, and I have been recognised as a ‘star’ by independent research company, Acritas, based on clients’ feedback.

As co-head of the firm’s satellites and space activities team, I am pleased to work with several major satellite businesses and related projects, harnessing the transformative power of satellite technology and related communications to enhance people’s lives, all around the world.

I am also the competition law partner in Australia and work closely with a broad range of clients in the region to help them achieve their commercial objectives in a way that doesn’t fall foul of competition or consumer laws. This includes advice on merger clearance, cartels and anti-competitive agreements as well as misleading or deceptive conduct.

I do have another string to my bow. Initially, I trained as a professional classical violinist before qualifying as a lawyer. A few years ago, I realised that I needed music back in my life. As a result, I founded the Sydney Lawyers Orchestra. The orchestra, which I direct and conduct, brings together other classically trained musicians from across the Sydney legal profession. Classical music combines mind with soul, technique with expression, striking the perfect balance between intellectual and creative, which is so important to me both personally and professionally, including in my work as a lawyer.

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