Festival Cruises and P&O Cruises announced last month that they would join forces in order to expand in the global cruise business. Festival, one of the Europe’s leading cruise lines, becomes a world cruise company once forces and joined with P&O, Princes and Germany’s Aida Cruises. All of Festival’s cruise businesses will be included in the merger.
This takes in its present fleet of four ships, its newbuilding program now underway in France, and its part-European sales and marketing network of subsidiaries in 10 countries. Festival, however, remains an independent brand in cruising.
The consideration to be paid by P&O will be a mixture of cash and shares and will depend partly on future results. With particularly strong profits, according to Festival, this would have of up to $400 million. The shares will be in the new cruise company to be created later this year by the demerger of P&O’s cruise division.