China's Warren Buffett is doing a deal with Thomas Cook
The Chinese firm will own 51% of the new venture while Thomas Cook will own the remaining 49%, to help develop domestic, inbound and outbound tourism activities for the Chinese market under Thomas Cook brands.
"We are delighted to work with Thomas Cook, the world's best known name in travel, to develop a leading travel business serving the growing number of Chinese travellers," said Qian Jiannong, President of Fosun's Tourism & Commercial Group, in a statement. "Today, there is a lack of innovation and differentiation in the travel product offerings for Chinese tourists in China and abroad, presenting an excellent opportunity for our new joint venture to gain a competitive advantage."
The idea of the joint venture is to utilise Thomas Cook's expertise in the international travel while Fosun will help with local market knowledge and operational resources, so Thomas Cook will gain direct exposure to China's growing demand for leisure travel.
Fosun and Thomas Cook will make a combined cash contribution to the joint venture of RMB 15 million (£1.56 million. $2.42 million) to support the initial start-up phase of the joint venture.
Peter Fankhauser, CEO of Thomas Cook, added:"Today marks a significant milestone in our strategic partnership with Fosun. We are excited at the prospects of entering the largest and fastest-growing tourism market in the world with such an experienced partner."