In morning trade, the Corporate Travel Management Ltd (ASX: CTD) share price is pushing higher.
At the time of writing, the corporate travel specialist’s shares are up 2% to $22.35.
Why is the Corporate Travel Management share price rising?
Investors have been bidding the Corporate Travel Management share price higher today after its proposed $175 million acquisition of the ANZ-based corporate and entertainment travel businesses of Helloworld Travel Ltd (ASX: HLO) was given a major boost.
According to the release, the Australian Competition and Consumer Commission (ACCC) has stated that it will not oppose the acquisition.
ACCC Chair, Rod Sims, said: “The ACCC reviewed the proposed acquisition as it combined two of the largest corporate travel management companies in Australia. However, we found that it was unlikely to result in a substantial lessening of competition.”
“Large travel management customers told us that there are a range of competitors that would be capable of servicing their needs, including Flight Centre Travel Group Ltd (ASX: FLT) and Amex GBT,” Mr Sims added.
The ACCC believes that these providers will continue to compete strongly with Corporate Travel Management after the acquisition. Furthermore, it also feels that other large overseas-based travel management companies, such as BCD Travel and CWT (Carlson Wagonlit Travel), and newer companies such as TripActions, could expand in Australia.
What now?
Gaining ACCC approval is a major positive for the deal and brings completion a big step closer.
Corporate Travel Management notes that completion of the acquisition is subject to the satisfaction of the remaining conditions precedent set out in the agreement. Both parties are continuing to work effectively together to satisfy these remaining conditions.
If all goes to plan, completion of the acquisition is expected to occur on 31 March 2022.
The post Corporate Travel Management (ASX:CTD) share price higher on ACCC Helloworld update appeared first on The Motley Fool Australia.
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More reading
- 2 great ASX shares to buy in March 2022: experts
- Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
- ‘Losses minimised’ but Helloworld (ASX:HLO) shares can’t hide from the havoc
- Why are ASX travel shares taking flight today?
- Corporate Travel (ASX:CTD) more than doubles its revenue amid easing COVID-19 travel restrictions
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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