How it started
Foundation and early years
The origins of the company lie in the industrial and transportation company Preussag AG, which was originally formed as a German mining company. It was incorporated on 9 October 1923, as Preußische Bergwerks- und Hütten-Aktiengesellschaft ('Prussian Mine and Foundry Company'). In 1927, it was merged with the Ruhr coal company, Hibernia AG, and electricity utility to become the Vereinigte Elektrizitäts und Bergwerks AG (VEBA AG, 'United Electrical and Mining Company').
While Preussag's roots were industrial, a parallel tourism lineage that predates the group's 1968 consolidation can be traced to early post-war package travel between Germany and Mallorca. In 1953, commercial relations began between the travel agency Dr Tigges (one of the forerunners of TUI) and the Riu family's hotel company, founded by Luis Riu Bertrán, offering vacation packages for German tourists to the beaches of Mallorca. The following year, Dr Tigges agreed to send organised German holidaymakers to the family's newly acquired Hotel Riu San Francisco in Playa de Palma, marking the start of RIU's longstanding cooperation with German tour operators.
After the sale of Salzgitter AG and purchase of Hapag-Lloyd AG (the navigation and logistics company) in 1997, Preussag AG became a global enterprise in the service and leisure industry. At that time, Hapag-Lloyd held a 30% interest in the tourism conglomerate TUI (founded 1968), increased to 100% by 1999. In addition, the company acquired 25% of Thomas Cook shares in 1997, which it doubled the following year. On 2 February 1999, the Carlson Leisure Group merged with Thomas Cook into a holding company owned by the German bank Westdeutsche Landesbank, Carlson Inc and Preussag. However, in mid 2000, Preussag acquired Thomas Cook's rival Thomson Travel and was forced to sell its majority 50.1% stake in Thomas Cook by regulatory authorities. In 2002, Preussag renamed itself TUI AG.
TUI announced a merger of its travel division with the British tour operator First Choice in March 2007, which was approved by the European Commission on 4 June 2007, on the condition that the merged company sell Budget Travel in Ireland. TUI held a 55% stake in the new company, TUI Travel plc, which began operations in September 2007.
In April 2008, Alexey Mordashov, who purchased his first shares in TUI Travel in autumn 2007, purchased additional TUI Travel shares under S-Group in order to expand TUI Travel into Eastern Europe and Russia.
From Wikipedia’s article on TUI Group, shared under CC BY-SA 4.0.3