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TUI, currently Europe’s largest operator, will take a majority 51-per cent stake in the enlarged company. First Choice Holidays is currently the third-largest European operator.
First Choice chief executive Peter Long will run TUI Travel with TUI northern Europe chief executive Peter Rothwell reporting into Long as deputy chief executive. TUI chief executive officer Dr Michael Frenzel will chair TUI Travel.
The merged company will take around 27 million customers to 200 destinations every year. First Choice chairman Sir Mike Hodgkinson said the merger gives the group “a unique opportunity to enhance margins.”
The deal follows closely behind the merger of MyTravel with Thomas
Cook, announced last month. Both mergers still have to gain approval
from the various competition and regulatory bodies in the UK and Europe,
but TUI and First Choice are expecting the deal to be finalized in the
third quarter of this year.