NORWEGIAN BUYS PRESTIGE FOR US$3 BILLION

NORWEGIAN Cruise Line Holdings has inked a definitive agreement with Prestige Cruises International that will see three major cruise lines operate under one umbrella. The US$3.025 billion deal will see Norwegian acquire Prestige – the parent company of Regent Seven Seas Cruises and Oceania Cruises. Each brand will retain its distinct product offering while Norwegian will focus on cross-promotional efforts to improve its bottom line. Norwegian chief executive Kevin Sheehan described the acquisition as a “compelling deal” that would allow the company to expand its market presence, tap into new age markets and deliver an “industry-leading cruise operator with an unmatched growth trajectory”. The deal marks a historic move for Norwegian that will see the company go beyond the all-ages mould and step into intimate and luxurious experiences. Sheehan is confident it will deliver “immediate financial returns” led by increases in capacity and a broader offering for clients. But the deal also begs the question as to whether Norwegian could give the industry heavyweights a run for their money. Carnival currently tops the podium, holding almost half of the world’s ocean cruise business with 10 brands. Caribbean takes out second place with six brands and 42 ships, while Norwegian has 21 ships across its three bands including Oceania’s five luxury ships and Regent’s three high end vessels. However, after 47 years in the business, expansions are on Norwegian’s agenda. The company recently took delivery of the 4000 passenger Norwegian Getaway – its most innovative ship to date. It also has four vessels on order at Meyer Werft for delivery over the next five years. Norwegian’s next move is anyone’s guess, but for now, it will focus on “retaining its brand positions” and “improving guest experiences”. The transaction is subject to regulatory approvals and conditions which are expected to be finalised by the end of the year.