Cook-Co-op merger dealt a blow

Thomas Cook’s planned retail merger with The Co-operative Travel has received a setback with the news that the Office of Fair Trading has asked for the go-ahead from the European Commission to look into the deal.

This means that approval for the merger will not come later this month, as the two parties hoped, and could be delayed until March next year.

The European Commission has until January 6 to decide whether to grant the OFT’s request. If it does, the OFT will have up to 45 working days to decide whether to block the deal on competition grounds.

Thomas Cook Group, The Co-operative Group and Midlands Co-operative said they were working with the relevant authorities to achieve an expedited clearance for the joint venture.

Thomas Cook chief executive Manny Fontenla-Novoa said: "The joint venture is a clear demonstration of our commitment to the high street.

"We always knew that this request was a possibility and we will continue to work closely with the relevant authorities.

"We remain confident that the transaction will be cleared in due course."

By Linsey McNeill