Thomas Cook and Co-op create UK's biggest travel agent

In a move creating the UK's largest travel agent, the newly formed company will have more than 1,200 shops across the country.

The tie-up is likely to result in job losses as the companies said the merger would generate savings of around 35m a year, including from the combination of headquarters and back-office functions.

Thomas Cook's Going Places shops will be rebranded Co-operative Travel under the agreement.

Co-op chief executive Peter Marks said: "This is a marriage between two of the industry's most trusted brands."

Last week, Thomas Cook, which will own 70 per cent of the new business, confirmed it was reviewing its UK workforce of between 13,000 and 15,000 staff, as well as its supplier base and all divisions in its UK arm, in a bid to cut costs.

Mr Marks said it was too early to confirm the number of job losses among the combined workforce of around 9,000 staff.

He said: "This is really about job creation and protection, but yes of course, by combining the two head offices there will be some job losses."

Thomas Cook Group chief executive Manny Fontenla-Novoa revealed the Midlands Co-operative would be joining as well, adding a further 103 stores to the portfolio.

Mr Fontenla-Novoa said the addition, to be confirmed in the next two weeks, would give Midlands Co-operative a 3.5 per cent stake in the new company, to be taken from Thomas Cook's share.