USCRUISINGgiant Carnival Corporation is exercising its option to buy the 32% of Cunard it doesn’t already own in a cash and stock deal valued at about $205m.
Carnival chairman and chief executive officer Micky Arison said the acquisition of Cunard was being made in anticipation of the future expansion of the brand.
“Considering the strength of the Cunard brand and its plans to build the largest ocean liner in the world to complement QE2, it simply makes sense for Carnival to own 100% of Cunard,” he said.
Under the deal, which is scheduled to close on November 15, Cunard’s minority stockholders have been offered cash or Carnival stock. Based on their responses, Carnival said it expected to part with $76.5m plus 3.2m shares.
Carnival purchased Cunard from Norwegian shipbuilder Kvaerner in May 1998. It has since announced plans to build a new ocean liner, a concept dubbed the “Queen MaryProject”.