THOMAS Cook has strengthened its position in the European market after German company Preussag agreed to buy a controlling stake in the group.
Preussag acquired a 24.9% stake from Thomas Cook parent WestLB and by September 30 will take a 50.1% controlling interest. The initial stake is believed to be worth ú200m.
Industry observers said WestLB, which majority owns Preussag, wanted to sell to concentrate all its travel businesses under Preussag.
Preussag became Europe’s largest tour company last year when it integrated operator TUI with Hapag Lloyd to form Hapag-Touristik Union (HTU).
Thomas Cook chief executive John Donaldson said the move will open up new possibilities for the group.
“HTU has a huge hotel accommodation capacity throughout Europe and we can build on that,” he said.
The maintenance of aircraft, buying parts and fuel will also benefit the combined airline fleet, he added.
WestLB will retain a 27% stake in the Thomas Cook group with Carlson taking the remaining 23%. Donaldson said the Carlson deal is expected to be completed later this month before going to the European Union for approval.