CMA starts probe into Hays takeovers 40 days


Ian Taylor


The Competition and Markets Authority (CMA) confirmed the “launch of merger inquiries” into Hays Travel’s takeover of Millington Travel and Polka Dot Travel last week. The CMA issued Initial


Enforcement Orders halting Hays’ integration of the businesses in mid- December but is only required to begin a formal ‘Phase 1 investigation’ once it has “sufficient information”, having sought comments from “interested parties”. It now has 40 working days to complete this, meaning a deadline for a decision on Polka Dot Travel by April 26 and Millington Travel by April 27. The regulator will decide by that


point whether to allow the takeovers to proceed or move to a more detailed Phase 2 investigation which could take almost six months. Hays announced the takeover


of Polka Dot and its 15 shops in the northwest and North Wales on October 30, and acquisition of Millington Travel with 14 outlets in the East Midlands on November 5. The CMA’s intervention


almost six weeks later came as a surprise. Hays had made a series of acquisitions over the previous two years, expanding to 530 branches, and the only previous takeover to attract CMA attention was that of Cruise. co.uk parent Victoria Travel Group in July last year. In that case, Hays was able to satisfy the CMA’s competition concerns without an investigation.


NCLH boss vows to correct ‘missteps’ and improve performance


Ella Sagar


Norwegian Cruise Line Holdings’ new chief executive has outlined a plan to review operations and “correct imbalances” in the business. The parent of Norwegian Cruise


Line, Oceania Cruises and Regent Seven Seas Cruises reported full-year and fourth-quarter 2025 results on Monday, with the outlook for 2026 profit looking “flat” year on year. NCLH chief executive John


Chidsey said the group “has clearly not been performing to its full potential”. He said there would be “a deep review” of operations and he would


8 5 MARCH 2026


prioritise improving “execution and coordination” across the business, adding the company had “under- invested” in technology, revenue management capabilities and customer-facing systems. “Correcting this imbalance is one of our top priorities,” he said, in addition to fixing “execution missteps”, creating “a culture of accountability” and examining shore-side costs. He said luxury brands Oceania


Cruises and Regent Seven Seas Cruises were “performing well”, but mainstream brand Norwegian Cruise Line, the largest of the three, “pulls the overall NCLH down”.


The CMA will launch a Phase 2


Timeline to complete Phase 1 investigation into autumn deals


The addition of Polka Dot and


Millington’s branches would have little overall impact on Hays’ market share. So, the investigation seems likely to focus on the regional impact on competition among agencies – probably in the northwest. The businesses must remain


separately run and with “no significant changes” while the CMA investigates whether there could be a “substantial lessening of competition”.


assessment if it finds “a realistic prospect” of this unless offered “remedies” that address its concerns. The bill for a Phase 1 investigation alone could run to £500,000. However, the CMA has agreed


‘derogations’ from the initial enforcement orders allowing Hays and Millington Travel to cooperate on anti-money laundering policies and practices and related training, subject to safeguards. These include a requirement that staff do not share “business secrets, know-how, commercially sensitive information or any other confidential or proprietary information” and sign non-disclosure


agreements approved by the CMA. i CMA enlists TV presenter Alexander Armstrong to front campaign, back page


John Chidsey


Chidsey’s comments followed


the recent publication of a damning letter from activist investor Elliott Investment Management, which called for board change and said NCLH’s finances had “atrophied”. Chidsey added “an all-new


leadership team” had been put in place “in most critical functions” and there would be further announcements as they “streamline and reorganise the business”. Chief financial officer Mark


Kempa said: “The big focus is on our mass brand Norwegian, aligning our commercial strategy and getting much sharper on our execution.


“From our standpoint, a good


portion of this is probably self- inflicted wounds that we can correct.” Those “wounds” were said


to have come from a previous “misalignment” between internal departments on its Caribbean strategy, resulting in a 40% capacity increase for the first quarter of 2026 “without the necessary enterprise-wide coordination”. In its latest earnings, the group


reported a 3.7% increase in total revenue for 2025 to $9.8 billion. Adjusted Ebitda, a measure of


profit, rose by 11% to $2.73 billion for the full year, exceeding guidance.


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