Thomas Cook Merger Considered by Commission

The Competition Commission has confirmed that it is in the process of considering whether the Thomas Cook/Co-operative Travel merger will encourage more directional selling.

 

On 16 August, the Commission will give its verdict on whether Thomas Cook, Co-operative Travel and Midlands Co-operative can merge.

 

Last week it issued a statement detailing 4 concerns about the merger, which would create a chain of over 1,200 new travel outlets.

 

Amongst the things the Commission said it would have to consider is whether competition would be reduced regionally and nationally, whether competitors would be denied access to Thomas Cook products, and whether the combined chain would favour its own brands too much. 

The Commission also said it is concerned whether the combined chain would give preference to its own products to the detriment of others, and whether it would cut off other suppliers.

The industry has until 13 May to submit comments.

 

The update-statement from the Commission follows on from the gathering information stage, and clarifies for all the interested parties which specific questions are being asked and areas of examination for the enquiry.

 

This will form the basis for hearings with the joint venture partners and other interested parties.