After a proposed deal last year fell through, the creation of the world’s largest tourism business is back underway after TUI and TUI Travel announced on Friday plans for a merger agreement estimated to be worth US$3.4 billion based on the value of outstanding TUI Travel shares that TUI does not own.
TUI, Hanover, Germany, and TUI Travel, Crawley, England, noted significant synergies through combining the two businesses, including potential cost savings of at least €45 million (US$61 million) per year, top-line growth expected to be enhanced by broadening the portfolio of unique holiday experiences and increased occupancy levels in existing hotels.
TUI said Alexey Mordashov, the largest shareholder in TUI AG, indicated his support for the merger.