AusBN - Australian hotels operator Mantra Group (ASX:MTR) has agreed to be bought out by French firm Accor SA in a AUS$1.18 billion deal which will create the biggest hotel group in Australia.
Mantra confirmed in a statement to the ASX that Accor had offered a price of $3.96 in cash for each Mantra share, which were worth $3.88 in early trading on Thursday.
The large-scale merger deal will give the combined group about 50,000 rooms across the country, roughly 11% of Australia’s total hotel market, based on IBISWorld statistics.
Operating under the brand name AccorHotels and under chief executive Sebastien Bazin, the company has followed an aggressive acquisition programme across several global regions, including Australia.
Bazin said in a statement: “[the deal will] underpin our long-term growth in the Asia-Pacific region.”
Accor is the world’s fifth largest hotel group with a portfolio of over 540,000 rooms worldwide and expanded by 80,000 rooms last year, around half of which came through acquisition and half through organic growth.