Thomas Cook, Sterling Holiday announce Rs 870 cr merger

Sterling will cease to exist as a company but will continue as a brand.

"We have no intention to integrate the Sterling brand into Thomas Cook," Menon added. Ramanathan said the merger will boost Sterling's market position as there are multiple natural synergies that will benefit both companies.

"Thomas Cook customers will have access to our pan-India network of well-located, full-service, quality resorts, which offer great holiday experiences," he added.

A senior Thomas Cook executive said Bay Capital, an investor in Sterling, will have around 2% equity in the merged entity. Based on the equity investments and merger ratios, the aggregate value of the two companies is estimated at about Rs 3,000 crore, they said in a statement.