Thomas Cook, Co-Op combine UK travel agents

Britain's Thomas Cook and the Co-operative Group are to merge their high street and foreign exchange business to create the country's largest retail travel network, they said on Friday.
Thomas Cook, which last week announced a cost-cutting programme to prepare for expected tough conditions in its home market, said the merger will result in savings of over 35 mln pounds per year.
"Today's announcement, together with our plans to cut costs and streamline the rest of our UK business, will put us in a much stronger position, should market conditions in the UK remain weak," Thomas Cook Chief Executive Manny Fontenla-Novoa said in a statement.
Thomas Cook will own 70% of the new company, whose results will be fully consolidated within its accounts and which will add to its earnings from the first full-year of operation.
No cash will change hands initially in the transaction, they said.
The new company, which does not include Thomas Cook's online business or any of its UK tour operators, will have over 1,200 shops.