KUONI has forged closer ties with German giant TUI by acquiring a 49% stake in its Swiss operation, TUI Suisse.
The two parties signed the deal for an undisclosed sum at ITB in Berlin.
It will allow Kuoni and TUI, which owns Thomas Cook, to enter into mutual retail activities, operate joint charter flying and integrate its hotels.
The deal is the second major acquisition in a month by Kuoni.
In late February, it took a 45% stake in Scandinavian Internet specialist Apollo Resor (Travel Weekly February 28).
Kuoni reported group profit of £35m last year, 12.3% down on 1998. The deficit was largely due to the £10m spent on the failed merger with First Choice.