French hotel group AccorHotels launched a $920 million bid to acquire Mantra Group, Australia's second-largest hotel company, according to Reuters.
Paris-based AccorHotels is already the leading hotel group in Australia while Mantra operates 125 hotels across Australia, Hawaii and Indonesia under the Mantra, Peppers and Breakfree brands.
"Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra Board," the group said in a statement to the Australian Stock Exchange via the ABC. "There is no certainty that an agreement will be reached or that the proposal will be implemented."
In addition to the AccorHotels and Mantra boards, the deal would require approval from the Foreign Investment Review Board as well as the Australian Competition and Consumer Commission (ACCC).
AccorHotels' bid comes amid record tourism in Australia, which has recently seen visitation and spending skyrocket. The boom is fueled by a rise in visitors from China, Europe and the U.S.
Citing IBISWorld statistics, Reuters reports that a combined company would own more than 300 hotels or roughly 11 percent of the country's hotel market. The acquisition would also eliminate AccorHotels' primary competitor and offer potential savings moving forward through combined booking systems.
The move could also help the company fend off increased competition from Airbnb.
[READMORE]READ MORE: AccorHotels Launches Millennial-Inspired Brand JO&JOE[/READMORE]
The bid comes after a busy week for the European hotel chain, which recently agreed to acquire search and reservation solutions provider Gekko for $117 million and purchased a 50 percent stake in Orient Express.
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