Commission gives nod to Thomas Cook merger

21st Jul 2011 07:19

Travel group Thomas Cook is in need of good news after a recent profits warning knocked the shares for six, so it was understandably pleased that the Competition Commission has provisionally waved through the merger of its travel agents business with the travel agent operations of The Co-Operative Group and the Midlands Co-Operative.The Commission said the merger could take place "without remedies", which means that there will not be a requirement to sell off or close any existing outlets. The merger will create a chain of more than 1,200 shops."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," said Thomas Cook's chief executive, Manny Fontenia-Novoa.The Competition Commission is expected to publish its final report by 16 August, 2011. Assuming it does not have a change of heart on the consolidation of the high street networks of the three parties, it is expected that the deal will go through by the end of Thomas Cook's financial year, which runs to September. --jh