British tour operator TUI Travel and parent company German TUI AG are said to have agreed on a merger thus creating the world’s biggest leisure and tourism business worth €6.5bn (£5.2bn).
This deal has long been anticipated by investors ever since the merger of Britain's First Choice and the TUI AG forming TUI Travel in 2007. The company shall have its headquarters in Germany but is to remain listed on the London stock exchange. Possible consequences for the UK job market that may follow the re-structuring are yet to be disclosed.
In an official statement Deputy Chairman Sir Michael Hodgkinson said: “By simplifying the structure and combining the two businesses substantial synergies and cost savings will be realized. In addition, the potential to deliver material commercial benefits will be unlocked." The planned merger is said to generate cost savings of at least €45m (£36m).
Shareholders will meet to vote on the merger in late October.
Written by: Team Flight-Delayed.co.uk