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Thomas Cook, Carlson to merge to form leisure travel giant

In one of the most significant deals in the global travel industry in recent years, the two world leaders in travel -- Thomas Cook and Carlson companies -- announced their intention today to merge Thomas Cook's worldwide leisure travel and financial services business with Carlson's United Kingdom leisure travel business.

This would result in the creation of an expanded group operating under the name Thomas Cook, which United States-based Carlson Companies Inc and Westdeutsche Landesbank would co-own, with Westlb owning a majority stake.

The proposed merger to follow a period of due diligence and regulatory approval, would create one of the world's largest leisure travel companies and one of the UK's largest vertically integrated travel groups.

The UK company would carry over 2.5 million package holiday-makers a year, operate a fleet of 32 aircraft and serve customers through a combined network of 800 travel shops nationwide and through three rapidly expanding call centres.

As neither Westlb or Carlson companies are listed, financial terms of the agreement would not be disclosed in the proposed merger, said a release issued by the Carlson Leisure group.

Westlb would contribute to the new partnership Thomas Cook's worldwide business, including its travel businesses based in Canada, Australia and India and its worldwide financial and global services businesses.

UNI