Estravel travel agency to buy majority holding in tourism co Wris
The Estonian travel agency Estravel Holding is to acquire 75 percent of shares in the tourism company Wris, it appears from a notice of concentration submitted to the Estonian Competition Authority citing LETA/BNS.
Wris AS is owned by Aili Kagu through the holding company Aka Holding OU. Kagu bought the company from Vjatseslav Leedo‘s Holostovi Kinnisvarahaldus last October.
Through the concentration, the Estravel group will have access to more favorable prices and procurement terms on the international market thanks to increasing total purchase volumes of travel services.
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More favorable prices, in turn, will enable the merging parties to better compete with foreign travel agencies that hold a significant market share thanks to cross-border purchases but which are not reflected in public data or national statistics.
Mark Aivo Takis, head and owner of Estravel, said in the application submitted to the Competition Authority that increasing the share of local travel agencies on the Estonian internal market would benefit the state in the form of both direct and indirect taxes, which the state does not receive at present.
The consolidated revenue of Estravel totaled 88.1 mln euros in 2017. The sales revenue of Wris AS amounted to 12.3 mln euros in 2017. According to the companies, the concentration will not change the activity of either of the companies, no employees will be laid off as a result of it and business activities will not be joined together.