Camp Australia Pty Ltd (Camp Australia) and Junior Adventures Group (JAG) have withdrawn their request for merger clearance by the ACCC.
The ACCC commenced an informal merger review on 1 June 2017. Following extensive feedback from interested parties, including schools and parents, the ACCC expressed concerns with the proposed acquisition in a Statement of Issues published on 10 August 2017.
“The ACCC had expressed concerns that the loss of competition between Camp Australia and JAG could result in higher prices for parents and lower quality care for students in some states,” ACCC Chairman Rod Sims said.
“Our preliminary view was that the proposed merger would have substantially lessened competition for the supply of before and after school care in Victoria, Western Australia, New South Wales, and Queensland. The ACCC was also further considering impacts in the Australian Capital Territory and South Australia.”
“Any transaction that sees the two largest players in a market merging will be closely scrutinised by the ACCC,” Mr Sims said.