What is the largest tour operator in the world? Well, the answer without doubt is TUI AG. This is because TUI Travel has completed a merger with this German parent company. The new deal has formed a tour operator with more than 136 planes, 300 hotels and 1,800 shops located all over Europe. The shops will be selling holidays to more than 30 million customers in hundreds of different countries.
The newly formed company has taken the name TUI Group and just started trading on the London Stock Exchange. At the start of trading, stocks were at 1,085 pence. This gives the company an initial value of around £5.6 billion, which is expected to climb in the near future.
Just before the merger, shares for TUI Travel were trading near 437 pence. However, trading was suspended last week because of the pending merger. Shareholders of TUI Travel received 0.399 shares of TUI AG shares for each of the old TUI Travel shares they held. This put the price of their old shares at pretty close to what the new shares are worth.
The chief executive of TUI Travel, Peter Long, says that he is the joint chief executive of TUI Group. This is a great day for the newly created firm. He is very excited about this new company and what the future holds for it. A lot of opportunities are in store.
The chairman of TUI Group, Klaus Mangold, said that TUI Travel and TUI AG are now one company. This means that they have combined their strengths and can continue to grow at a rate that would not have been possible separate.
The former owner of TUI Travel, Thomas Holidays, has agreed to all of the terms of the merger. It’s not known for sure what Thomas Holidays received for the merger, and it’s likely that no figure will be disclosed until the company announces its quarterly report.
This merger has been in the works since 2007. The deal was attempted last year but collapsed because of a price agreement. Now the problem has been settled, and the two companies are becoming one. Big things will be announced from TUI Group in the near future.