British travel groups unveil merger

British holiday firm Thomas Cook and the Co-operative Group yesterday announced a merger of their stores and foreign exchange businesses, to create the nation’s biggest high-street travel chain.

The new company will be 70 per cent owned by Thomas Cook and 30 per cent owned by the Co-operative, and will have more than 1,200 shops across Britain and about 4.3 million customers.

“Thomas Cook and The Co-operative Group will create the UK’s largest high-street travel retailer and the second largest provider of retail foreign exchange,” the pair said in a statement.

The two groups aim to generate annual cost savings of about £35 million (€39 million, $55.4 million) in a deal which is expected to complete in December.

“Today’s announcement, toget her with our plans to cut costs and streamline the rest of our UK business, will put us in a much stronger position, should market conditions in the UK remain weak, and will build a firm foundation for the future,” said Thomas book chief ex-ecutive officer Manny Fontela-Novoa.

“For our shareholders, this transaction will deliver synergies, be earnings accretive and unlock significant value for no initial cash consideration.”

Thomas Cook and Co-operative Travel branches will continue to operate under the same brand names, while the deal remains subject to regulatory approval.