Thomas Cook, Co-op travel to merge

Thomas Cook and the Co-op were today given the go-ahead to merge their high street travel chains to form the country's largest retail travel agency.

The link will see 780 Thomas Cook shops join with 460 under the Co-op brand.

Industry experts believe some shops will be closed and jobs lost once the merger is completed.

The Competition Commission said the deal should not harm the package holidays market and added: "Customers are unlikely to suffer from significantly higher prices or reduced choice as a result of the joint venture."

Thomas Cook recently issued its third profit warning in a year and announced the departure of its long-standing chief executive Manny Fontenla-Novoa.

It has also launched a major review of its underperforming UK business, which has suffered from its concentration on family package holidays.

Rival TUI has done better in the UK by broadening its offering to include more tailor-made holidays.