TUI welcomes the European Union’s merger clearance

UI AG welcomes the approval by the European Commission of the planned merger to create TUI Travel PLC. “This means we have taken the first crucial hurdle on the path to creating the world’s leading travel group,” says TUI chief executive Dr Michael Frenzel. Furthermore, “With the merger we are expanding our leading position in Europe and are gaining more ground in the specialist tourism growth sector. The merger creates the world’s biggest tourism platform. Together with First Choice we are writing a new growth story and will be ideally equipped to successfully face increasing competition in our industry.” The clearance is subject to an undertaking to divest TUI's Budget Travel business in Ireland.

On the basis of the figures for the fiscal year 2006 the merger creates under the umbrella of TUI Travel PLC a travel group with sales of some 18 billion euros ((£12.1 billion) and an underlying EBITA of around 500 million euros (£340 million). Last year some 27 million holidaymakers travelled with the tour operators and airlines of TUI Travel PLC. The new plc expects the merger to liberate an annual synergy potential of about 150 million euros (£100 million), which will come into full effect within the first three years after finalising the fusion. A major part of the synergy will be generated on the British market.

The next steps on the path to the merger include publishing the stock exchange prospectus for listing on the LSE as well as the extraordinary general meeting of First Choice Holidays PLC. The target date for publishing the prospectus is the end of June. All other exact dates will be decided shortly. Assuming the merger is approved by the necessary three-quarters majority, TUI Travel’s first listing could take place at the start of October.

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