Brussels, 07/01/2011 (Agence Europe) - Following a request from the Office of Fair Trading (OFT), the UK competition authority, the European Commission decided on Friday 7 January to refer assessment of the proposed acquisition of the travel businesses of Cooperative Group (CGL) and of Midlands Cooperative Society (Midlands) by Thomas Cook to the UK authorities.
Thomas Cook operates throughout Europe as a leisure tour operator, while CGL and Midlands focus on the retail distribution of holiday products in the UK.
The OFT requested the Commission to refer the notified concentration for review to the UK authorities under Article 9 of the EU Merger Regulation. It is concerned that the transaction might threaten to significantly affect competition in the distribution of holidays via retail travel agency outlets in the UK and a number of affected UK regions. This opinion is shared by the Commission - hence its decision to refer the matter to the OFT, as both CGL and Midlands only operate in the UK and not in other member states. Any potential competition concerns are therefore strictly limited to the United Kingdom. (O.L./transl.jl)