Bloomberg reported on Wednesday that Shanghai-based Fosun Group is folding Club Mediterranee and tour operator Thomas Cook Group into a new entity called Fosun Tourism and Culture Group.
The financial services, pharmaceuticals, leisure and property group is restructuring some assets after announcing more than US$15 billion in overseas acquisitions since 2010 through August. Fosun said in August it was preparing to sell as much as US$5.8 billion in assets as it focuses on raising its credit rating to above junk.
Thomas Cook has stated it plans to make China a “substantial” part of its business in a bet that the world’s largest outbound tourism market can help make up for weakness in Europe. Fosun said it expects the number of Chinese traveling outside the country to grow by as much as 20% annually.