OFT to probe Thomas Cook/Co-op merger

7th Jan 2011 08:07

The Office of Fair Trading (OFT) has 45 working days to investigate holiday company Thomas Cook and the Co-operative Group's high street travel agents and foreign exchange businesses. A request from the OFT for jurisdiction over the merger, which solely relates to the UK, has been granted by the European Commission. "We will continue to work closely with the OFT to obtain a rapid clearance," Thomas Cook said Friday.The merger, if approved, will create Britain's largest high street travel network with over 1,200 shops - 803 Thomas Cook and 401 Co-op - and result in savings of more than £35m a year. Cook will own 70% of the new company, which will rank as the second largest provider of retail foreign exchange, and the Co-op 30%. The deal doesn't involve any cash.