Expedia takeover of Wotif full steam ahead.
Wotif has just confirmed that the New Zealand Commerce Commission has given Expedia the go-ahead to acquire up to 100% of the shares of Wotif.com Holdings Limited.
The NZCC’s decision process had delayed the takeover process, but today’s ruling clears the way for the deal to be implemented effective Friday 14th November 2014.
The Commission focused on the competition effects of the merger in the market for online accommodation bookings for NZ accommodation providers and consumers – in particular whether the loss of Wotif meant that the remaining players including Booking.com and Expedia would find it easier to raise prices or reduce service quality.
“The Commission is satisfied that the merger will not have, or would not be likely to have, the effect of substantially lessening competition in all affected markets,” according to the NZCC.
In particular the regulator found that metasearch sites such as TripAdvisor and Google Hotel Finder are “playing an increasingly important role in the online market for accommodation bookings”.
More information in tomorrow’s issue of Travel Daily.