MyTravel and Thomas Cook to merge

MyTravel, the £1.1bn UK holiday company, and Thomas Cook, the subsidiary of German retail group KarstadtQuelle, confirmed on Monday a merger that would create the second biggest tour operator in Europe.

At the same time Peter McHugh, chief executive of MyTravel, ruled the new company out of the auction for the package tour business of First Choice, a UK competitor that has been in talks with both MyTravel and Thomas Cook.