TUI, First Choice Unveil Detailed Merger Plan
Three months after announcing one of the biggest European travel unions, TUI Tourism and First Choice Holidays have revealed details of their post-merger strategy, including more acquisitions and global expansion. The merger is expected to close September 3.
According to the companies’ joint prospectus, TUI Travel will employ approximately 48,000 people and operate in 180 countries worldwide, servicing more than 30 million customers.
The combined operation will total more than 170 brands, including TUI, Thompson, First Choice, the Moorings, Intrav, International Expeditions and Nouvelles Frontieres, among numerous others. It also will include a pan-European airline group of 155 aircraft.
TUI Travel will be headquartered in Crawley, England, and will be organized into four travel sectors: mainstream, specialist, activity and online destination services.
In an effort to maximize both companies’ capabilities, TUI Travel will package and distribute specialty product by integrating First Choice’s niche product experience with TUI Tourism’s distribution faculties in Europe.
The company also plans to continue looking for small- and medium-sized investments in niche growth segments, including the North American student travel sector, international escorted tours, adventure travel and online content. It will also look to expand into the Asia Pacific region and Latin America.
Additionally, TUI Travel plans to establish TUI Airline Management, an airline competence center to ensure consistency across its airlines.
All of this is dependent on several critical dates and conditions of the merger, including a minimum 75 percent vote by First Choice shareholders slated for July 23. The merger must also be cleared by the European Commission and any non-E.U. competition authorities.
If the deal is finalized, First Choice shareholders will cumulatively own a 49 percent share of TUI Travel, while the other 51 percent will be owned by TUI AG, which will be the parent company of TUI Travel.
