Thomas Cook and Co-Op Travel to merge

The Competition Commission (CC) has cleared a merger between struggling Thomas Cook's UK retail business and those of the Co-operative group and Midlands Co-operative Society, to create the country's biggest retail travel operation.

The deal will bring together three of the biggest travel agents on the high street. Thomas Cook currently has 780 stores, while the Co-op has 360 travel shops and the Midlands 100.

"The CC has concluded that... customers are unlikely to suffer from significantly higher prices or reduced choice as a result of the joint venture." 

Rival TUI Travel, which owns the Thomson and First Choice chains, has fared better in recent times.

Thomas Cook plans to conduct its tour operator business separately from the joint venture.