CCI okays Rs 870-crore Thomas Cook-Sterling Holiday deal
8 March 2014 12:39 AM GMT
The Rs 870 crore-deal involving merger of Sterling Holiday Resorts with travel firm Thomas Cook (India) has received the Competition Commission's approval.
Approving the multi-structured deal, the fair trade regulator CCI said the deal is not likely to have an adverse impact on competition in the country.
Under the deal, Chennai-based Sterling Holiday Resorts' (India) and some other business would be transferred to Thomas Cook Insurance Services, a subsidiary of Thomas Cook (India). Further, Thomas Cook would issue certain equity shares of the subsidiary to Sterling Holiday's shareholders.
Besides Sterling Holiday, with its residual business, would merge into Thomas Cook (India). In lieu, certain amount of shares of the travel firm would be issued to shareholders of Sterling Holiday, as per the ratio set out. In an order dated March 5, the Competition Commission of India (CCI) said that ‘the proposed combination is not likely to have an appreciable adverse effect on competition in India’.
It also observed that Thomas Cook (India) and Sterling Holiday were ‘not engaged in similar business’.
Among others, CCI observed that ‘the business of hotel services across India is relatively fragmented and there are different channels for availing the hotel services along with the presence of large number of big players as well as intermediaries/agents’.
Approving the multi-structured deal, the fair trade regulator CCI said the deal is not likely to have an adverse impact on competition in the country.
Under the deal, Chennai-based Sterling Holiday Resorts' (India) and some other business would be transferred to Thomas Cook Insurance Services, a subsidiary of Thomas Cook (India). Further, Thomas Cook would issue certain equity shares of the subsidiary to Sterling Holiday's shareholders.
Besides Sterling Holiday, with its residual business, would merge into Thomas Cook (India). In lieu, certain amount of shares of the travel firm would be issued to shareholders of Sterling Holiday, as per the ratio set out. In an order dated March 5, the Competition Commission of India (CCI) said that ‘the proposed combination is not likely to have an appreciable adverse effect on competition in India’.
It also observed that Thomas Cook (India) and Sterling Holiday were ‘not engaged in similar business’.
Among others, CCI observed that ‘the business of hotel services across India is relatively fragmented and there are different channels for availing the hotel services along with the presence of large number of big players as well as intermediaries/agents’.
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