Thomas Cook’s merger of its High Street travel business with The Co-operative Travel Group’s retail operation is to be investigated by the Office of Fair Trading (OFT).
The European Commission announced today that is was handing the review to the OFT because it only affects UK businesses. The OFT now has 45 working days to examine the merger and decide whether it should be referred to the Competition Commission for an in-depth investigation.
The two companies issued a joint statement saying they would continue to work closely with the OFT to obtain a "rapid clearance" for the merger, which will create the UK’s largest travel retail chain.
If the deal goes ahead, Thomas Cook and The Co-operative Travel Group will collectively own more than 1,200 stores across the UK, but the Competition Commission has the power to block the merger or insist that the two companies sell off some shops.
Thomas Cook and The Co-operative Travel Group anticipate the merger will save them more than £35m in total. Thomas Cook will own 66.5% of the business, The Co-operative Travel Group 33% and Midlands Co-operative will take a 3.5% share.
By Linsey McNeill
