Jetset Travelworld reported that its shareholders had unanimously approved its merger with Stella Travel Services. Jetset Travelworld, the Australian tour operator, said its shareholders had approved its $400 million merger with Stella Travel Services. From the merged entity, Peter Lacaze will head the enlarged business, currently being considered one of the foremost travel services firms in Australia.

The Australian competition regulation watchdog last week approved the two firms’ merger plans, arguing that the merged entity might probably come under intense competition from the travel retailer Flight Center Ltd, online travel agents and direct supply by airlines and hotels. Jetset operates Qantas Holidays and Qantas Business Travel and was founded in Melbourne four decades ago.

On its part, Stella Services has businesses such as Harvey World Travel and Travelscene American Express. The shareholder approval is representative of an affirmation of the thirst for increased business and dominance in the Australian hospitality industry, analysts reiterated. The firm’s shareholders overwhelmingly approved the merger plans.  Jetset had its general meeting on Monday in which more than 90 per cent of the firm’s shareholders gave the merger the go ahead.

Tom Dery, Jetset Travelworld chairman, issued a statement reiterating the firm’s delight over the shareholder approval for the merger. Jetset is keen on forging ahead with the plans, said Dery. However, Lacaze, Jetset’s chief executive officer, said the merger brings with it lots of opportunities for the merged unit for the future. Lacaze reiterated that he was delighted at the conclusion of the proposed merger and the firm would now focus on building the merged entity into one of Australia’s, as well as New Zealand’s foremost travel services firms.

According to the two firms, the $440 million merger is designed to help the two companies remain strong in Australia's highly competitive travel sector. The merger, announced to the Australian Stock Exchange, will see the creation of a company with 3,000 employees and operations split 60/40 between the retail and wholesale sectors. Stella will receive $220 million worth of shares in Jetset, while the newly-merged business will take on $40 million worth of Stella's debt.

The company will remain listed on the Australian Stock Exchange. The Jetset Travelworld Group, One of Australia’s leading travel services groups, is an integrated business of travel brands and channels to market covering each segment of the travel market: retail, wholesale, corporate and online.

6 Sep 2010.