Travel major Thomas Cook is set to acquire Tata Capital’s wholly owned subsidiaries Tata Capital Forex and TC Travel and Services. The value of the proposed transaction was not disclosed.

“Our acquisition of Tata Capital’s forex and travel companies serves to further strengthen the Thomas Cook India Group’s leadership position in the travel and foreign exchange sector in the country,” Thomas Cook (India) Chairman and MD Madhavan Menon said in a statement.

This also gives “us the opportunity to continue to serve the strong corporate portfolio of both Tata Capital Forex Ltd and TC Travel Services Ltd — large corporate houses including flagship Tata Group companies, as also a set of new retail customers. The acquisition creates opportunities resulting in stronger customer service and stakeholder value,” he added.

However, these companies will continue to run under the Tata Capital management in consultation with Thomas Cook till the share sale is through. The network of the two acquired companies currently spans 26 locations and approximately 300 employees.

Non-core businesses

The Tata Group, under new Chairman N Chandrasekaran, has got the mandate to sell non core businesses to strengthen the balance sheet and reduce debt.

Tata Capital MD and CEO Praveen Kadle said: “Travel and forex services are poised for rapid and high growth. We are confident that Thomas Cook will take this business forward and help it reach its potential.” Shares of Thomas Cook were down 0.41 per cent on Monday.