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Travelcare owner in merger discussions
Plans to merge two of the country’s largest Co-operative societies will create a 400-plus branch travel agency chain.
Travelcare parent, the Co-operative Group, and United Co-operatives today confirmed that they have agreed to discuss a merger between the two societies to create a £10.5 billion business.
Travelcare is the UK’s largest independent travel agency chain running 330 branches with 2,000 staff plus other web outlets while United has 115 outlets as well as various other travel interests.
United runs Co-op Travel with outlets across the North Midlands, North West and Yorkshire; homeworking network Future Travel, the Freedom travel agents consortium, Co-op Travel Management and cruise division Barrow Travel. The travel division generates turnover of around £568 million a year
The Co-op group’s annual turnover covering its total range of businesses is £8 billion against United’s at £2.5 billion.
A joint statement said: “Talks have commenced and a further statement from the two boards will be issued when they conclude.”
The discussions are expected to last for a number of months.
United Co-ops’ travel interests were already being strengthened with plans to merge with the Leeds Co-operative Society.
The Leeds society has 17 travel agencies in and around the city.
The Leeds proposal follows the Sheffield Co-op voting to join United from January to give it a spread of businesses across Yorkshire.
Leeds president David Schofield said the society faced a number of major new challenges along with significant changes in some key markets, most notably in the travel trade.
“Such a merger will bring significant benefits to our members, employees and local communities,” he said.
Report by Phil Davies
Phil Davies
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