Shareholders in Tui Travel and its German parent Tui AG have voted to approve the proposed merger of the two companies.
The recommended all-share merger of the two companies was voted on at two meetings yesterday.
The court meeting of independent directors of Tui Travel and the general meeting of Tui Travel shareholders both passed the resolutions by the required majority of 75%.
Shareholders at Tui AG’s extraordinary general meeting in Hanover representing 99.85% of Tui shares voted in favour of the merger, when at least 75% was needed for the deal to go ahead.
The tie-up is expected to result in €170 million of cost savings and tax benefits and will streamline a holding structure that includes headquarters in both the UK and Germany and two separate stock market listings.
It is now expected the final court hearing to sanction the merger will be held on December 10, and it will then come into effect on December 11.
Tui Travel chief executive Peter Long said: “Having announced the recommended merger in September, I have taken the opportunity to meet with a significant number of our independent shareholders to discuss the strategic rationale for the transaction.
“I believe that we have been able to demonstrate to our shareholders that the merger is principally about sustainable, profitable growth and future-proofing our business.
“Today’s result is testament to the fact that the overwhelming majority of our shareholders believe this merger will successfully continue to deliver value for them.”
Sir Michael Hodgkinson, deputy chairman and senior independent director of Tui Travel, said: “We believe that the rationale for this merger, creating the world’s number one integrated leisure tourism business, is compelling.
“We have secured more than the 75% of the votes required for both the Scheme of Arrangement at the Court Meeting and the Special Resolution at the General Meeting proving the considerable support amongst shareholders.
“I and my fellow independent directors are delighted this step in the merger has been successfully completed.”
A merged Tui would employ 72,000 people. It would also see Tui Travel delisted from the FTSE 100 in December and re-entered under Tui AG.