Royal Caribbean Cruises (RCL.US) is reportedly close to acquiring a 50% stake in Sandals for nearly 3 billions USD, expanding into the all-inclusive land resort business.
Royal Caribbean is close to finalizing a 3 billion dollar deal to acquire a 50% stake in Sandals.
Zhitong Finance APP has learned from a source familiar with the matter that Royal Caribbean Cruises (RCL.US) is close to reaching a $3 billion deal to acquire a 50% stake in Sandals. According to the source, the deal values the Caribbean resort chain at $6 billion and is expected to boost the growth of both companies. The source added that negotiations are ongoing and a deal may ultimately not be reached.
After reports emerged that the deal may materialize, Royal Caribbean Cruises’ stock price fell about 6% on Tuesday. The company’s shares have dropped about 25% over the past year, after it lowered its revenue growth forecast due to weakening demand on European routes.
The cruise company has been committed to diversifying beyond cruises to become a leader in the integrated resort sector. Royal Caribbean Cruises already operates several private destinations for its cruise passengers, yet has been focusing on expanding its land-based business.
Sandals and its Beaches brand have more than a dozen properties in the Caribbean, which would give Royal Caribbean a foothold in the “all-inclusive” sector.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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