EAST Lancashire-based firm MyTravel is set to merge with leading travel agents Thomas Cook.

The European Commission has announced its decision to clear the proposed merger of MyTravel Group plc, based in Rossendale, and Thomas Cook AG to form Thomas Cook Group plc.

Formerly known as Airtours, the MyTravel Group, which employs 300 people at call centres in Accrington and Helmshore, has fought back from the brink of collapse in the wake of the 9/11 attacks, which hit overseas travel hard.

Last March, the firm announced it was making "significant progress" when a £2m deal with First Choice was clinched to make MyTravel North America the largest seller of cruise holidays in Canada.

Commenting on the merger with Thomas Cook, MyTravel chief executive Peter McHugh said: "I am delighted we have received this clearance. This is a significant milestone on the way to completing the merger, which is clearly in the best interests of our shareholders."

Manny Fontenla-Novoa, group chief executive officer of Thomas Cook AG, said: "This is a very important development for us in the process of merging these two businesses and we are very pleased that the commission has decided to clear the transaction.

"We are now one step closer to being able to deliver the substantial benefits of this merger to all our staff, customers, business partners and shareholders."

The merger remains subject to a number of conditions, including the approval of MyTravel shareholders, and by the court. If these are satisfied the merger is expected to be completed by June 19. MyTravel Group employs 13,000 people worldwide.