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The Thomas Cook Group, The Co-operative Group and the Midlands Co-operative are delighted the Competition Commission has provisionally cleared their merger to create the UK’s largest multi-channel travel retailer, and welcome their provisional conclusion that the joint venture will not result in a substantial lessening of competition. Assuming the final report confirms today’s news, the merger would create the UK’s biggest travel retailer with the largest network of stores, a leading internet business and significant direct channels that all complement each other.
Manny Fontenla-Novoa, Thomas Cook Group plc Chief Executive 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."
Peter Marks, The Co-operative Group Chief Executive added: "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. "
Martyn Cheatle, Midlands Co-operative Chief Executive commented: "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."
The merger will consolidate the parties’ high street networks; provide a broader distribution base; and it will enable the retail operations to be more cost effective with the rationalisation of back office operations. The Competition Commission is now expected to publish its final report by 16 August 2011, and assuming that the final report gives outright approval for the merger, it is anticipated that the deal will be completed by the end of the current financial year.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
