Thomas Cook deal referred to competition body

The proposed takeover by holiday giant Thomas Cook of two British travel businesses was referred to UK competition authorities by EU regulators today.

A preliminary investigation showed Thomas Cook Group's deal to buy the travel businesses of Co-operative Group and Midlands Co-operative Society "threatens to give rise to competition concerns in the market for holiday distribution, in particular of package holidays, in the UK," the European Commission said.

The company said it will "continue to work closely with the Office of Fair Trading to obtain a rapid clearance".

Under the proposed deal, Thomas Cook and Co-operative Travel will retain their separate branding across 1,200 stores. The deal does not include Thomas Cook's online operation.

The companies hope it will result in around £35 million in cost savings thanks to job cuts, store closures, and the combination of their headquarters.