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Tui agrees £4.5bn merger with British subsidiary Tui Travel

Job losses expected as German parent company combines its hotels and cruise ships with UK travel group's tour-operating

A £4.5bn deal to form the world's biggest leisure and tourism company looks set to finally take off after the German travel group TUI and its British subsidiary TUI Travel agreed a merger.

A deal had been anticipated in the City since TUI merged its holiday business with rival First Choice Holidays seven years ago, becoming a majority shareholder in the new TUI Travel. In early 2013 TUI made a failed attempt at a merger after shareholders balked at the terms of a deal.

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