TUI merges with First Choice
The tourism division of Germany's TUI AG is to merge with UK tour company First Choice to form one of Europe’s largest tour operators. It is understood the new TUI Travel plc, which will be based in the UK and listed on the London Stock Exchange, will include both companies’ cruise interests, but not TUI’s container ship operator, Hapag-Lloyd. After completion of the merger, TUI AG will hold a 51% stake in TUI Travel plc, with existing First Choice shareholders holding the remaining stake. The merger is expected to be completed in the third quarter of this year. The move follows a similar announcement of a merger between Thomas Cook and MyTravel last month. Hapag-Lloyd's future becomes uncertain once again. TUI-First Choice will be focused purely on tourism, while Hapag-Lloyd will operate boxships. TUI-owned Hapag-Lloyd Cruises runs four up-market cruise ships; in the UK, TUI owns Thomson Cruises, which operates entry-level vessels which are chartered from Louis Cruises. Meanwhile, First Choice has Island Cruises, a 50/50 joint venture with Royal Caribbean Cruises in the UK. In December, TUI announced plans with Carnival Corp to develop, market and operate AIDA and a new TUI Cruises. This will now have to be reconsidered.
