Midlands Co-operative merger green lighted
The merger between the The Co-operative and Thomas Cook travel businesses has been given the go-ahead. The merger, which includes the Midlands Co-operative's 100 stores, will create the biggest travel business on the high street.
Competition Commission chiefs gave the green light this morning, allowing the merged company to create a chain of 1,200 high street shops.
Through the deal, Thomas Cook’s 780 shops will merge with The Co-operative Travel’s 360 stores and Midlands Co-operative’s 100 outlets.
Thomas Cook will be the majority owner, and will pay a guaranteed dividend of £10m per year to The Co-operative.
In a statement this morning, Thomas Cook chief executive Manny Fontenla-Novoa said: "High street retail remains an important distribution channel for package holidays and one that consumers value. We firmly believe in the synergistic nature of this deal and the opportunities it offers. This merger is just one part of the plan to strengthen our UK business."
Both businesses announced their intention to merge in October last year.
