May 21, 2022

HLO) not opposed by ACCC – The Market Herald

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  • The ACCC will not oppose the acquisition of Helloworld Travel (HLO) by Corporate Travel Management (CTD)
  • The ACCC has focused its review on competition for large businesses and governments, as this is an area where businesses compete
  • He said many travel management companies are able to compete for smaller businesses because they have less complex travel requirements.
  • During consultation with market players, no concerns were expressed regarding the acquisition due to the large number of travel management companies competing in the industry.
  • CTD shares closed up 0.23% today at $21.98 each, while HLO ended the day up 2.31% at $2.21

The ACCC will not oppose the acquisition of Helloworld Travel (HLO) by Corporate Travel Management (CTM).

The ACCC focused its review on competition for large businesses and governments because this is an area where businesses compete closely.

Small business customers are likely to have less complex travel requirements, and there are many smaller travel management companies competing for these customers, according to the ACCC.

During consultation with market players, no concerns were expressed regarding the acquisition due to the large number of travel management companies competing in the industry.

The ACCC expects these providers to continue to experience strong competition, as well as large overseas-based travel management companies.

ACCC President Rod Sims said the range of competitors was key to his decision.

“The ACCC considered the proposed acquisition as it combined two of Australia’s largest corporate travel management companies,” he said.

“However, we found that this was unlikely to result in a substantial lessening of competition,” he said. Large travel management clients have told us that there are a range of competitors able to meet their needs, including Flight Center and Amex GBT.

CTD shares closed up 0.23% today at $21.98 each, while HLO ended the day up 2.31% at $2.21.