Qantas Airways’ travel businesses and Jetset Travelworld are now free to merge, after the Australian consumer watchdog said today it does not intend to intervene.
The merger, which was announced in February, proposed Qantas Holidays Ltd and Qantas Business Travel Pty Ltd merge with listed travel franchise operator Jetset Travelworld (JET).
Under the deal, Jetset will acquire all the shares in Qantas business in exchange for scrip in Jetset. The transaction would mean Qantas would end up with a controlling 58% stake.
“Jetset wishes to advise that the Australian Competition and Consumer Commission (ACCC) has confirmed that it does not intend to intervene in the proposed merger of Jetset Travelworld Limited and Qantas Holiday Limited and Qantas Business Travel Pty Limited (wholly-owned subsidiaries of Qantas Airways Limited),” the company said in a statement.
Qantas has previously said the merged entity would sell travel services to the total value of around $3 billion a year and generate revenues in excess of $800 million a year, making it one of the top travel businesses in the region.
The merger will require shareholder approval by a majority of Jetset shareholders at a shareholders’ meeting expected to take place this month.
Shares in Qantas fell 12 cents to $3.83 while Jetset shares rose 16 cents to $2.37.
