Mergers, Acquisitions and Takeovers Case Study

Will the Merger Between MyTravel and Thomas Cook Payoff?

OR

Abstract:
On February 12th 2007, Thomas Cook AG, a tourism subsidiary of German retailer KarstadtQuelle announced a merger with MyTravel Group plc. The merger was in response to a decline in the European vacation travel business growth. The merger intended to arrest the decline and gain over the top company in the business, Touristik Union International (TUI). But, TUI in reply announced a merger with First Choice Holidays of UK, to defend its position as the leading European travel firm.

Pedagogical Objectives:

• The strategic rationale behind merger and acquisitions
• The competitive landscape of the European Tour Operating Industry
• Thomas Cook’s market capturing strategies
• Whether the merger will pay-off for Thomas Cook.

Keywords : Thomas Cook AG; MyTravel; TUI; First Choice; Mergers,Acquisitions,Alliances Case Study; European Tour Operating Industry; Merger; KarstadtQuelle; Tourism; Travel Business; Regional Diversification; Aircrafts; Germany; UK; Europe; Debt-for-equity

Contents : 
The Tour Operating Industry
Top 10 European Tour Operators: 2004 Earnings
Thomas Cook AG at a glance
MyTravel Group plc at a glance
Why is Thomas Cook merging with MyTravel?
Outcome of the merger
Combined Brands of Thomas Cook Group plc