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Mergers, Acquisitions, Alliances and Synergies Case Study
Case Title:
Will the Merger Between MyTravel and Thomas Cook Payoff?
Publication Year : 2007
Authors: Md Sadik Hassan, Menaka Rao
Industry: Tour Operating Industry
Region: Europe
Case Code: MAA0154B
Teaching Note: Available
Structured Assignment: Available
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