TUI shifts ownership of Hapag-Lloyd Cruises
TUI has agreed to sell its Hapag-Lloyd Cruises business to TUI Cruises, the joint venture the company operates with Royal Caribbean Cruises.
The deal is valued at €1.2 billion.
In a statement, the German travel company said the sale price had a net cash element of €700 million, including a €63 million earn-out if Hapag-Lloyd meets its earnings target.
TUI said the sale would generate a considerable book gain.
The travel giant added it had agreed with Royal Caribbean to expand their partnership for luxury and expedition cruises.
Hapag-Lloyd sells cruises in German-speaking markets and has two five-star luxury ships and three expedition ships.
TUI said: “The partnership combines the shipbuilding, operational and digital expertise of Royal Caribbean and the strong brand and distribution power of TUI.
“In light of the transaction it is anticipated the luxury and expedition fleet will grow in the coming years, as it is expected that the demand for luxury and expedition cruises will continue to grow.”