Having received clearance from the Competition Commission of India (CCI) earlier this week, Thomas Cook (India) Ltd, a travel and travel-related financial services company, along with its wholly-owned subsidiary Travel Corporation (India) Ltd, announced the completion of acquisition of 100 percent stake in Kuoni Travel (India) Private Ltd.
The transaction was formally concluded on Wednesday, Thomas Cook (India) said in a statement. The deal worth Rs.535 crore was initially announced in early August 2015 and then Thomas Cook India had stated that the transaction would close in the third quarter of this financial year.
As per the deal, Thomas Cook India has acquired Kuoni Group’s Travel businesses across both India and Hong Kong. Both these companies will be run independently and the employees have been retained.
In addition to the current brands of Thomas Cook and Travel Corporation (India) (TCI), the acquisition now allows Thomas Cook India Group to use the SOTC brand (including SITA) forever, the Kuoni brand in India for 12 months and in Hong Kong for five years.
As per agreement with Thomas Cook Group, the Thomas Cook brand can be used by Thomas Cook (India) till 2025 but before that the name is likely to be changed.
“We have successfully completed the closure process for the acquisition of Kuoni Travel across India and Hong Kong,” Thomas Cook India Managing Director Madhavan Menon said in a statement.
“This gives us significant synergies across the entire spectrum of travel services, including, inbound, MICE, outbound and domestic, as also corporate travel. As part of our strategic intent of a larger Asia play, we had taken the first step with our acquisition of Luxe Asia in Sri Lanka and Kuoni Hong Kong is now a reiteration of our intent,” he said.
Menon said, “The acquisition of Kuoni India represents strong businesses and brands that we plan to leverage for customers of both Kuoni and Thomas Cook India.” Thomas Cook India is promoted by Fairfax Financial Holdings through its wholly-owned subsidiary, Fairbridge Capital (Mauritius) and its controlled affiliates.
Fairbridge is responsible for the execution of acquisition and investment opportunities in the Indian subcontinent on behalf of the Fairfax family of companies.
Canadian businessman of Indian origin Prem Watsa, Chairman and CEO of Fairfax, who acquired the Indian business of Thomas Cook Group in 2012, is now aggressively investing in India and expanding his business empire through acquisitions.
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