German travel group TUI has announced a merger of its tourism unit with Britain's First Choice to boost its position as Europe's biggest travel firm.
The two firms said they planned to create TUI Travel, a London-based tourism giant with about £12 billion of revenues, just weeks after rivals Thomas Cook and MyTravel announced plans to merge.
TUI and First Choice said their combined business would be headquartered and listed in London, and 51% owned by TUI and 49% owned by the shareholders of First Choice.
First Choice chief executive Peter Long, who will also take up that position at TUI Travel, said the changing face of the industry meant he was confident competition regulators would clear the tie-up with TUI's tourist business.
First Choice owns Falcon/JWT Holidays and First Choice Travel Shops in Ireland.
