EU gives go-ahead for Thomas Cook takeover plan

Thomas Cook’s planned takeover of tour operator Gold Medal was approved by the European Commission today.

The merger brings together the giant leisure group, offering package holidays and running its own charter airline, and an independent UK company specialising in long-haul travel.

A Commission statement at the end of a routine investigation said the merger had been cleared under EU merger regulations because it would not “significantly impede” effective competition in the travel and holiday sector.

The activities of Thomas Cook and Gold Medal were largely complementary, went on the Commission.

“Thomas Cook is predominantly active in short-haul destinations with a focus on package holidays, while Gold Medal focuses on long-haul destinations and sales of third parties’ scheduled flights.

“The proposed transaction would lead to overlaps solely on the markets for short-haul and long-haul foreign package holidays.”

The statement added: “The Commission’s investigation found that the parties would continue to face several effective competitors with significant market shares and that the proposed concentration would thus not raise competition concerns.”