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 up the Corporate Travel Management share price 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.
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 could expand in Australia. Examples include BCD Travel and CWT (Carlson Wagonlit Travel) and newer companies such as TripActions.
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. 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.
The travel agent's recently released half-year results revealed a doubling of revenue as COVID-19 restrictions continue to ease.
Western Australia's border reopened to interstate and overseas travellers today.
