Mids Co-op travel agent merger gets go ahead

COMPETITION regulators have given the green light to the planned merger of the Midlands Co-operative’s travel agency business with Thomas Cook and The Co-operative.

The deal brings together three of the biggest travel agents on the High Street and creates the country’s largest retail travel operation.

Thomas Cook currently has 780 stores, while the Manchester-based Co-operative has 360 travel shops and the Midlands Co-op has 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 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.

Midlands Co-operative chief executive Martyn Cheatle said: “This is great news. We have always said the joint venture is in the best interest of our customers, members and colleagues and we welcome the provisional findings announced today by the Competition Commission.”