Competition chiefs approve Co-op’s Thomas Cook deal
COMPETITION regulators have given the green light to the planned merger of The Co-operative’s travel business with holiday giant Thomas Cook.
The deal, which also includes Midlands Co-operative Society’s stores, will create the country’s largest retail travel operation.
It bring together three of the biggest travel agents on the high street. Thomas Cook currently has 780 stores, while the Manchester-based Co-operative has 360 travel shops and the Midlands 100.
Thomas Cook plans to conduct its tour operator business separately from the joint venture.
In a statement the Competition Commission said it had concluded that the acquisition would not result in a substantial lessening of competition in the UK, in particular for customers buying package holidays from high street travel agents.
The decision gives a big boost to Thomas Cook, Europe’s second biggest travel firm, which has issued three profit warnings in the last 12 months and underperformed arch rival TUI Travel, the owner of Thomson and First Choice.
Thomas Cook will own 70% of the combined entity and the mutuals the remaining 30%.
The deal will also create the second biggest high street foreign exchange business after the Post Office.
Peter Marks, chief executive of the Co-operative Group said: “We are delighted by the Competition Commission’s provisional findings which clear the way for the creation of the most exciting and dynamic travel business in the UK.
“We’re also sure that when the joint venture launches it will deliver significant benefits for our customers and members thanks to the greater range of holidays and services offered. “
Manny Fontenla-Novoa, chief executive of Thomas Cook Group said: “This announcement is not only great news for Thomas Cook and the Co-operatives, but also for our customers and staff too and we now look forward to bringing the merged business to life.
“High street retail remains an important distribution channel for package holidays and one that consumers continue to value. We firmly believe in the highly synergistic nature of this deal and the significant opportunities that it offers; this merger is just one part of the plan to strengthen our UK business.”
