Together Falcon JWT and Budget have a 55% share of the Irish tour operator market, a fact that was raised as a concern in talks with EU regulators on Thursday.

In a statement on Friday, First Choice and TUI said they would consider "the potential sale of one of their Irish businesses".

Both companies refused to comment regarding which of their Irish operations was more likely to be sold.

But analysts said Falcon JWT, with a last reported turnover of 112m in the Republic and 45m in Northern Ireland, would be most likely put up for sale.

Budget Travel had a last reported turnover of 200m and a 35% market share.

"It would make more sense to sell the smaller player, " according to Mark Brumby, analyst with Blue Oar Securities in London.

The merged Thomas Cook/MyTravel group, which received EU competition clearance on Friday, is being tipped as a potential bidder, along with indigenous firm Excel.

However, Falcon JWT MD Damien Mooney dismissed the speculation saying that as far as he is concerned it's business as usual in the company. "The reality for us is that we remain focused on providing a service to our customers, " he told the Sunday Tribune.

"Nothing has been decided yet. They have only mentioned a potential sale of one of their Irish business, " he added.

The Irish Travel Agents Association welcomed the decision by Brussels to examine the proposed merger's impact on the Irish market.

"We are very pleased that they are looking at this, " said chief executive Simon Nugent.

The European Commission are set to announce their decision on the merger or before 4 June .