TWO of the biggest names in coach touring confirmed yesterday that their £200m merger deal was complete.

Coach Holiday Group (CHG), which owns Wallace Arnold, is to merge with Shearings to form one of Europe's largest coach holiday companies.

Wallace Arnold operates coaching holidays from all over the North-East and Yorkshire. The merger creates a company with a combined annual passenger count of nearly one million, a database of more than 2.5 million people and more than 3,400 staff.

CHG is the parent company of holiday brands including Wallace Arnold, National Holidays and Caledonian Travel. The new company will target the affluent and growing over-55 age group.