Mega deal between TUI and Royal Caribbean Cruises
Hamburg/ Miami — Allen & Overy LLP has advised listed global tourism group TUI AG (TUI) on one of the largest transactions in the cruise business.
TUI is contributing its luxury cruise business bundled in Hapag-Lloyd Cruises to TUI Cruises, the Hamburg-based 50:50 joint venture between TUI and Miami-based Royal Caribbean Cruises (Royal Caribbean). The transaction is valued at €1.2 billion (excluding net debt). The transaction is still subject to customary closing conditions and approvals from the relevant regulatory authorities and is expected to close in the summer of 2020.
With the sale, TUI and Royal Caribbean have also agreed to further expand their partnership by using the proven joint venture structure of TUI Cruises for the luxury and expedition cruise segment in the future. The partnership combines Royal Caribbean’s shipbuilding, operational and digital expertise with TUI’s strong brand and distribution power.
Hapag-Lloyd Cruises is part of the TUI Group’s cruise business and the leading provider of luxury and expedition cruises in German-speaking countries. Currently, the fleet consists of two luxury ships in the five-star plus category and three expedition ships. As part of the transaction, there are also plans to expand the luxury and expedition fleet in the coming years, as demand for luxury and expedition cruises is expected to continue to grow.
Advisors to TUI AG: Allen & Overy LLP
Partner Dr. Helge Schäfer (photo ) and Counsel Dr. Jonas Wittgens (both lead) as well as Associates Louisa Graubner and Dr. Moritz Merkenich (all Corporate/M&A, Hamburg), Partner Dr. Heike Weber and Associate Sven Bischoff (both Tax, Frankfurt) as well as Partner Dr. Börries Ahrens and Senior Associate Dr. Ioannis Thanos (both Antitrust, Hamburg). Partner Stephen Mathews (Corporate, London) advised on issues of British capital markets law.
The transaction was handled in-house at TUI by Marcus Beger and Mareike Ackermann (both TUI Group Legal/M&A).