The proposed merger between travel giant Thomas Cook and UK based Co-Operative group has come under the scanner of Office of Fair Trading (OFT).
The merger will create the largest high street travel company in the UK. The European Commission had started an investigation to the proposed merger, but later transferred the case to Britain since it affected the UK operations.
Assuring of all co-operation Thomas Cook said it will “continue to work closely with the OFT to obtain a rapid clearance”.
Co-Operative Travel and Thomas Cook plan to retain their separate brand identities under the agreement. The merger will allow the combined entity save £35 million annually.
Thomas Cook admitted that the deal may potentially cause hundreds of job losses as number of stores will be closed.
Thomas Cook’s web based business has been put outside the scope of the proposed merger.