The Australian Federal Treasurer issued a "no objection" statement on the proposed takeover of local hotel operator Mantra Group Ltd. by French hotelier AccorHotels through a scheme arrangement under a A$1.18 billion deal.

The watchdog gave its approval for the merger to move ahead under the Foreign Acquisitions and Takeover Act 1975 and related regulations. The decision follows the Australian Competition and Consumer Commission's no-opposition statement on the proposed scheme.

However, the deal is still subject to the approval of the target's shareholders and the Federal Court of Australia. In a disclosure, Mantra said the scheme booklet is expected to be distributed to shareholders in April, with the shareholder vote to follow in May. If all conditions are satisfied, the scheme's implementation is expected to commence in May.

Mantra directors recommended earlier in March that shareholders give their approval for the A$3.96-apiece binding scheme arrangement in the absence of a superior proposal.