The competition regulator says the deeper pockets of private equity group Next Capital which is now a major backer of campervan rentals group Jucy should help inject competition into the sector, as it gave the green light to a merger of the two largest rivals in Australia, Apollo and Tourism Holdings.

The Australian Competition and Consumer Commission forced the divestment of $39 million of assets to smaller competitor Jucy. It said on Thursday that was enough to clear the broader union between Apollo, which is listed on the ASX, and Tourism Holdings, which is listed on the New Zealand stock exchange. The proposed deal was first announced last December.