Commission clears Best Western to acquire Pacifica

Media Release

Issued 4 December 2003-04/070

Commission clears Best Western to acquire Pacifica

The Commerce Commission has granted a clearance to the New Zealand Motel Federation Incorporated, trading as Best Western, to acquire Pacifica Lodges & Inns Society Limited.

Best Western and Pacifica are voluntary corporations whose members are independent hotel, motor inn and motel accommodation providers. Both provide sales and marketing, reservations and support services to their members and license their members to trade under the respective Best Western and Pacifica brands.

Acting Chair Paula Rebstock said the Commission was satisfied that the proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition in the markets for the provision of organisational services and branding to motels and motor inns, and the provision of motel and motor inn rooms to intermediaries in the wholesale market.

The Commission was satisfied that the combined entity would face strong competition from existing competitors in these markets - notably the existing motel chains - and that neither individual motels nor accommodation wholesalers would be disadvantaged by the proposed acquisition.

A public version of the decision will be shortly available on the Commission's website under the Adjudication section.

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