The possibility of Germany’s second largest tour operator, DER Touristik, buying the third, FTI Group, is facing skepticism within the German tourism industry. One even wonders if the authorities would authorize the operation even if it would make business sense. The merger of the two tourism giants would exceed the TUI group.
It should be remembered that the two giants have subsidiaries in France
DER Touristik notably owns Kuoni and the many associated brands (Donatello, Scanditours, Vacances Fabuleuses). The CEO of the whole remains Emmanuel Foiry.
FTI Voyages is present in France and whose CEO is Axel Mazerolles.
FTI’s heavy indebtedness
Some advantages are perceived in this possible merger on the German market. The heavy debt contracted by FTI following the crisis caused by the COVID, part of which with the public aid fund WSF or its recent problems with the computer system.
The patriarch sold his stake in FTI to his son
On the other hand, Samih Sawiris sold his stake in FTI – around 75% to his son Naguib Sawiris, 31 years old. He is an American businessman apparently less involved in German tourism investment than his 65-year-old father. While Lionel Souque, CEO of the Rewe group – parent company of DER Touristik has shown himself to be open to mergers and acquisitions.
What about the German authorities
As for the role of the German authorities in this whole affair, in the event that such a consolidation agreement were approved by the competition, the result would be that there would be two tourism titans at the head of this activity with clear dominant positions on the market