CTS (Holdings) Corporation of China has officially merged into China Travel Service (Holdings) Hong Kong Limited, according to the Oriental Morning Post.
It is the largest ever merger and acquisition (M&A) case in the domestic tourism industry. CTS (Holdings) Corporation of China became a wholly-owned subsidiary of China Travel Service (Holdings) Hong Kong Limited following the merger.
Total assets of China Travel Service (Holdings) Hong Kong Limited increased to 35 billion yuan from the previous 32 billion yuan (US$4.23 billion) and its net assets rose to 17 billion yuan from 15 billion yuan following the merger.
The merger will benefit CTS (Holdings) Corporation of China and enable it to compete in the international market, said experts. China Travel Service (Holdings) Hong Kong Limited will no longer be a middleman but a supplier and wholesaler to the tourism industry by 2010, according to the company's board chairman Zhang Xuewu.
CTS (Holdings) Corporation of China currently owns China Travel Service Head Office, restaurant and scenic spot businesses. With 80 years of history, China Travel Service (Holdings) Hong Kong Limited owns 63 travel agencies in 12 countries and regions.