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Mantra CEO maintains confidence in A$1.18B Accor merger despite completion delay

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Mantra CEO maintains confidence in A$1.18B Accor merger despite completion delay

Mantra Group Ltd. CEO Bob East, with the announcement of the company's interim results, said that the A$1.18 billion merger with AccorHotels is on track despite its completion being pushed to the final quarter of the financial year, The Australian Financial Review reported.

East was quoted in the Feb. 15 report as saying that he is not concerned at all about the AccorHotels deal, which was originally scheduled to wrap up by the end of March.

Settlement of the A$3.96-per-share takeover bid will see the creation of an entity that will take control of about 53,000 rooms across 370 hotel properties operating under various brands from budget to luxury.

The deal with Accor is currently under review by the Australian Competition and Consumer Commission. The watchdog's stamp of approval is one of the necessary requirements to officially close the deal aside from the respective go-aheads from shareholders of the target, the Federal Court of Australia and the Foreign Investment Review Board.

In January, the commission said its decision on the merger will be delayed as it needs more information from the French buyer. In spite of the road bump, East said there is no indication that Accor will back out of the all-cash agreement that was signed in October 2017.