Thomas Cook and Co-op set to take off!
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The Competition Commission have given the green light for Thomas Cook and the Co-op Travel Agent to merge. This merger will create the largest travel agents in the UK. Prior to the merger these two companies have been two of the three largest firms in this market.
However it was decided that the merger would not make customers suffer. The Competition Commission said it found the ability of high street travel agents to flex their prices at a local level was limited and competition from internet and other package holiday operators reduced the scope for price rises.
With more than 1,200 shops between the two companies, the newly-formed company will also be the second biggest in foreign exchange.
It is expected that it will also lead to job losses and store closures after Thomas Cook promised savings of around £35million a year from the merger.
The final report is due on the 16th August from the Competition Commission where the rubber stamp is expected on the merger.
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