QUADRANT Fund 5 is free to flex its muscles further in the gym market, after Australia's competition watchdog announced today that it wouldn't oppose the company's acquisition of the Fitness First Asia Pacific Group.
As the owner of the Goodlife Health Clubs network and lead franchisor of Jetts Fitness, Quadrant set the market abuzz when it proposed the acquisition of yet another full-service gym chain.
Following a month-long review, The Australian Competition and Consumer Commission (ACCC) determined that Quadrant would continue to face sound competition despite owning the country's two largest full-service gym chains.
ACCC Commissioner Roger Featherston says emerging and alternative fitness models would still give Quadrant a fair run for its money.
"The ACCC determined that following the proposed acquisition, Fitness First, Goodlife and Jetts would continue to face competition from other alternatives, including low cost gyms such as Anytime Fitness and specialist gym providers such as F45 and Crossfit," says Featherston.
"Other suppliers of fitness services, such as bootcamps, or specialist studios, such as pilates, also impose a degree of competitive restraint on full service gyms."
Featherston also noted that gym location is a factor which can give solo proprietors the edge when sparring with the bigger players.
"The ACCC also found that convenience of location was an important factor in a consumer's choice of gym, thereby giving an individual gym an opportunity to compete against a chain of gyms," he says.
In recent years, the industry has undergone several dynamic changes, new operators and overseas competitors entering the market, something the ACCC also considered in its decision.
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