7th Feb 2020 08:22
(Alliance News) - FTSE 100-listed TUI AG and partner Royal Caribbean Cruises on Friday said they have agreed to expand the Hapag-Lloyd Cruises brand by integrating it into the TUI Cruises joint venture.
Hapag-Lloyd Cruises is part of the TUI cruise business. It provides luxury and expedition cruises in German-speaking markets with a fleet of two luxury ships and three expedition ships.
TUI Cruises is a 50/50 joint venture formed between TUI and Royal Caribbean Cruises in 2008.
The merger of TUI Cruises and Hapag-Lloyd Cruises under the joint venture will create an European cruise company with a current combined fleet of twelve ships, TUI said.
The deal for the joint venture to buy Hapag-Lloyd Cruises is valued at EUR1.2 billion on a debt and cash free basis, TUI said, with the transaction expected to complete in summer, subject to customary closing conditions and certain regulatory approvals.
The integration of Hapag-Lloyd Cruises in the joint venture will allow TUI to participate in global cruise industry growth at a low level of capital expenditure, the Anglo-German travel company explained.
"The ships' identities, service, quality and customer experience will remain as individual and unique as they are today. This will create significant advantages for the group, for our expansion and for our investments," explained TUI Chief Executive Fritz Joussen.
"We're changing the ownership structure behind the brand to facilitate stronger, faster and capital-light growth. At the same time, we use the proceeds to drive TUI's digital transformation."
Shares in TUI - which is headquartered in Hanover - were trading 0.1% higher in London on Friday at 850.00 pence a share.
By Evelina Grecenko; [email protected]
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