The merger of European high-speed rail operators Eurostar and Thalys has moved a step nearer after the European Commission approved the deal.

A merger of cross-border operator Eurostar and Belgium-based Thalys was first proposed by French national rail operator SNCF, which owns a controlling stake in both operators, in 2019.

The European Commission has now cleared the way for the creation of a new enlarged rail company, which will keep the Eurostar name, and will link the UK with France, Belgium, Germany and the Netherlands. The company will be based in Brussels.

¡°The commission concluded that the proposed concentration would not raise competition concerns, given its very limited impact on the structure of the market,¡± said the European Commission in a statement.

Before the pandemic, SNCF said the Eurostar-Thalys merger, which was originally called the Green Speed project, would create a train company offering 112 daily trains and serving 18.5 million passengers per year.

Last year Eurostar reached a ?250 million refinancing agreement with its shareholders and banks to ensure its survival after experiencing financial problems during the Covid crisis.?

The operator is now rebuilding its services back to a full timetable with plans to add a fourth daily return service from London to Amsterdam and Rotterdam.

Meanwhile, the UK-based Business Travel Association (BTA) has announced that Eurostar has rejoined the association as a Premier Partner.?