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Thomas Cook India, travel service provider, has inked deal to take over 100% stake in rival Kuoni Travel (India) Pvt Ltd. Thomas Cook will acquire Kuoni group's business in India and Hong Kong for Rs 535 crore. A total of 1,800 employee of Kuoni's Travel business will continue in the group and business activities will continue as ‘independent entity’.

The acquisition was approved on Friday in "one or more tranches, financing the deal through a mix of funds from earlier equity infusion, internal accruals, debt funds (for Hong Kong) and or other permissible modes". Thomas Cook India operates over 232 locations in 95 cities across India, Mauritius & Sri Lank.

Prem Watsa, Fairfax Holdings Chairman and CEO, said, "Acquisition of Kuoni's tour operating and retailing businesses in India & Hong Kong as well as the Indian Inbound business reaffirms our belief in the India market potential, as also our strategic intent to explore viable geographies, including the larger Asia opportunity."

Rajeev Wagle, managing director of Kuoni India, said, "While we will continue to operate as two separate companies & brands - a partnership like this - where each partner brings complementary strengths and capabilities to the table, has the potential to create a far more capable, more innovative, more efficient and most importantly - an organisation that can add more value to travelers in the markets we serve."

-Sumana