El Corte Inglés to buy back 25% of travel arm, taking full control

What's the deal? El Corte InglésDealroom has a profile for this one. Try Dealroom → has agreed to buy the 25% stake held by Tool Factory in Grupo Viajes El Corte InglésDealroom has a profile for this one. Try Dealroom →, giving the Spanish retailer 100% ownership of the travel group. The deal value was not disclosed.

Why now? The buyback follows what the company called the "successful" technology and business integration of LogitravelDealroom has a profile for this one. Try Dealroom →. It fulfils a shareholder pact struck in February 2022, when Tool Factory — then owner of the Logitravel brand — entered the travel group's capital.

What's the endgame? The 2022 deal merged both companies' travel agency businesses, spanning leisure, corporate, incentives, congresses, and events. Logitravel brought digital expertise; Viajes El Corte Inglés brought the largest network of travel agents, plus experience in tour operations and premium travel.

What changes? With full control secured, Tool Factory will refocus on investment in hotel assets, managed through SmyHotelsDealroom has a profile for this one. Try Dealroom →.

What could go wrong? The acquisition still needs approval from Spain's Comisión Nacional de los Mercados y la Competencia (CNMC) and Portugal's competition authority, the Autoridade da Concorrência. Both regulators cleared the original 2022 integration.

The signal: By absorbing the digital capabilities it once needed a partner to supply, El Corte Inglés tightens its grip on one of Spain's largest travel businesses — while its former partner pivots toward hotels.

Read more: intereconomia.com

Image credit: dalbera