A proposed merger that would have seen one company running more than a quarter of the nation's after-school care centres has been called off.
Camp Australia and Junior Adventures Group, which operates OSHClub and Helping Hands centres, have announced the scrapping of the proposed deal.
The decision follows a negative preliminary report from the Australian Competition and Consumer Commission (ACCC) last month.
"The proposal was always dependent on the approval of the ACCC," a spokesperson for Camp Australia said in a statement.
"After much consideration, we have decided not to proceed with the proposal, and we have therefore withdrawn our application."
Junior Adventures Group was also contacted for comment.
Camp Australia, owned by the United States-based private equity firm Bain Capital, is the country's largest provider of before and after-school care, with around 780 centres looking after nearly 50,000 Australian school children.
The merger would have given it control over another 385 centres currently operated by OSHClub and Helping Hands.
Junior Adventures Group is owned by the private equity firm Advent Partners, which has it's headquarters in Melbourne.
Last month, the competition watchdog indicated it was unlikely to approve the merger, finding there was a risk it would result in higher fees and lower quality care.
"Our preliminary view was that the proposed merger would have substantially lessened competition for the supply of before and after-school care in Victoria, Western Australia, New South Wales, and Queensland," said chairman of the ACCC Rod Sims.
"Any transaction that sees the two largest players in a market merging will be closely scrutinised by the ACCC."
In December last year, Camp Australia was declared ineligible to win or renew any government contracts in New South Wales following a number of breaches.
The ACCC said it was aware of concerns that the merger would be used as a back-door entry to the NSW market.
