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Cruises

TUI and Royal Caribbean Expand Cruise Partnership With $1.3 Billion Deal

Patrick Whyte
Hapag-LLoyd Cruises Hanseatic Nature

Photo Credit: Hapag-LLoyd Cruises Hanseatic Nature. TUI Group is selling the luxury line to its joint venture with Royal Caribbean Cruises. TUI Group

Skift Take

This seems like a win-win for TUI Group. It gets an established partner to help grow its luxury and expedition cruise line — while also keeping a share of the business — and at the same time it gets the cash to help pursue its digital strategy.

TUI Group is selling Hapag-Lloyd Cruises to its joint venture with Royal Caribbean Cruises in a deal worth $1.3 billion (€1.2 billion). The headline figure is the enterprise value with a net cash consideration of around $767 million (€700 million). TUI will put the proceeds towards its previously announced digital transformation as well as to strengthen the group's balance sheet. The purchasing company, TUI Cruises, is a 50:50 joint venture between TUI Group and Royal Caribbean, established in 2008.

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When the deal goes through later this year, two of TUI's three cruise businesses will now be part of the joint venture with luxury and expedition brand Hapag-Lloyd Cruises j

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