Jurisdiction - India
India – CCI Clears Acquisition Of Sterling’s Travel And Hotel Related Services Business By Thomas Cook.

10 April, 2014


On March 5, 2014, CCI cleared the proposed acquisition of travel and hotel related services business of Sterling Holiday Resorts (India) Limited (‘Sterling’) by Thomas Cook (India) Limited (‘TCI’) and Thomas Cook Insurance Services (India) Limited (‘TCIS’), (collectively, ‘Thomas Cook’).


The transaction involved:

a. Transfer of the resorts and time share business of Sterling to TCIS by way of a demerger and amalgamation of remainder of Sterling’s business into TCI;
b. Acquisition of 22.86% of equity share capital of Sterling by TCIS;
c. Acquisition of 19.94% of equity share capital of Sterling from : (i) India Discovery Fund Limited; (ii) Bay Capital Investments Limited; and Bay Capital Investment Managers Private Limited by TCIS; and
d. Acquisition of 9.93% of the equity share capital of Sterling by TCIS through market purchases on the floor of Stock Exchange. This acquisition was made pursuant to a public announcement of an open offer by Thomas Cook to purchase 26% of the equity share capital of Sterling under the relevant provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

While examining the competitive effects of the transaction, CCI defined the relevant market as the “market for travel and hotel related services” in and from India. CCI noted that the market is fragmented and is characterised by the presence of a large number of big players and several intermediaries/agents.

Accordingly, CCI was of the view that the proposed transaction was unlikely to cause an AAEC and approved it under Section 31 of the Act.



For further information, please contact:


Zia Mody, AZB & Partners
[email protected]


Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 

[email protected]


Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 

[email protected]


Aditya Bhat, AZB & Partners 
[email protected]

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