EU clears Club Med takeover by French, Chinese bidders

(BRUSSELS) - The European Commission on Wednesday cleared the takeover of upmarket holiday group Club Mediterranee by its main French and Chinese shareholders.

The Commission said the takeover would not impact the travel agency and services market and so did "not raise competition concerns."

In June, Chinese investment house Fosun and AXA Private Equity raised their bid to win full control of Club Mediterranee to some 550 million euros ($737 million), winning board approval for a deal which had raised fears about the future of a French icon.

Small investors have been hostile to the offer for Club Med, as the company is known, amid some concerns about a Chinese company having a major say in its future.

Earlier this month, the Paris stock market authorities said the bid, which was due to close on August 30, would be extended indefinitely, pending a ruling on a legal challenge to the deal by several small shareholders.

Club Med is a high-profile player in the French tourism sector but the global economic slump forced it to change strategy, putting the focus on international activities and aiming for substantial expansion in China.

In Asia, Club Med has been active in Japan for more than 20 years and also operates in Thailand, the Maldives and in Bali, Indonesia.

Fosun, which became a shareholder in 2010, was the biggest single shareholder with 9.96 percent while AXA PE held 9.4 percent.