First Choice Holidays has terminated talks regarding the sale of its Mainstream Holidays Division.

The announcement came following the announcement today of a merger of Thomas Cook and MyTravel – two of the companies believed to have been bidding for the First Choice’s mainstream business.

The Virgin Group were also believed to be a frontrunner to agree a deal for First Choice’s mainstream business most likely in a joint-venture.

First Choice has its annual general meeting on March 7, when it will announce a trading update.