Shares in Jetset Travelworld (ASX:JET), an Australian company engaged in selling of international and domestic travel products and services, soared as the Australian Competition and Consumer Commission gave the tour operator the green light to acquire Stella Travel Services.

Jetset stocks climbed to 82 cents after adding 13.5 cents or 19.71 per cent.

ACCC chairman Graeme Samuel said in a statement that the watchdog had conducted an extensive review of this transaction to ensure that it would not adversely impact Australian travellers.

"After looking very closely at the issues, the ACCC found that the merged Jetset-Stella entity and its member agents are likely to face continued and increasing competition from online travel agents, direct supply by airlines and hotels, and the largest travel retailer in Australia, Flight Centre."

Mr Samuel explained further that the Internet has dramatically increased the number of available choices for customers.

"As a result, not only are traditional bricks and mortar agents forced to compete harder on price and service to attract customers, but airlines, hotels and tour companies also have new ways of reaching those customers."

Jetset Travelworld operates Qantas Holidays and Qantas Business Travel, while Stella Travel Services has the key brands Harvey World Travel, Travelscene American Express, BestFlights, Travel 2, Travel Indochina, and the ATS Pacific networks.

Jetset was confident of the merger proceeding, according to its chairman, Tom Dery who also said the company is now looking forward to shareholders approving the merger at the general meeting to be held on 6 September this year.

The merger is expected to be completed on 30 September 2010.