News

The European Commission is expected to either clear or refer the proposed Thomas Cook MyTravel merger this Friday after the parties announced savings of £95 million, £20 million more than original estimates.

An EC decision on Friday would fall within the expected timetable and would then allow MyTravel to hold its shareholder meetings, which are needed in order for the deal to go through, on May 29 before a court hearing sanctioning the merger on June 18.

The newly formed Thomas Cook Group, which would take control of both companies, would then be able to list shares and commence dealing as a single entity on June 19.

The predicted savings will be fully realised within the next two to two and a half years while reorganisation costs, which will be met over a period of 12 to 18 months, are now expected to be £125 million.

The group is warning this will lead to an exceptional charge in both this financial year’s and next’s accounts.

MyTravel UK is also finding bookings slow this year and has reported a drop in this year’s summer bookings of 6.6% as of April 15.

However, the operator added capacity has been reduced by 8.6% for the same period, meaning 58% of the operator’s capcaity had been sold by mid-April with average selling prices up 1% on last year.

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