xxxx

P and O Princess have merged with Royal Caribbean Celebrity, any one heard this news ? Any one in the trade like to comment.<BR><BR>Paul what are your views ?<BR><BR>

xxx

This will now give them 41 ships and 75,000 berths to fill. Are we in for another round of takeovers ?Who's next?

Frank

P&O Princess said it would own 50.7 per cent of the merged company and Royal Caribbean 49.3 per cent. The enlarged company would still have a smaller market value than its bigger rival Carnival Corp which has a market capitalisation of about $15bln.<BR><BR>P&O said it expected operational synergies of $100m a year from the merger. It said the combined company would have annual revenues of about $5bn and an enterprise value of $11.8bn. <BR><BR>Shares in cruise ship operators plunged following the September 11 terror attacks, which led to cancellations and a drop in bookings.<BR><BR>It will have 41 ships that could accommodate up to 75,000 people, and has leading positions in the Caribbean, Alaska, Mediterranean, Baltic and Panama Canal cruise markets.<BR><BR>Its rival, Cunard-owner Carnival, has 43 cruise ships and plans an additional 15 by 2005. <BR><BR>Royal Caribbean chairman and chief executive Richard Fain said the combined group had 14 ships on order to be delivered by 2004, giving a total group capacity of 100,000 berths.<BR><BR>"That is significant when you consider the total capacity of the cruise industry was 100,000 in 1993," Fain said. <BR><BR>"We are a consumer business. A consumer business depends on brands, and we have the best brands in the best markets, which combined together is an unbeatable opportunity," Fain said in a briefing to industry analyst.<BR><BR>P&O Princess owns the P&O, Princess and Swan Hellenic. Royal Caribbean owns Royal Caribbean International and Celebrity Cruises brands. <BR><BR>The deal is expected to be completed, subject to shareholder and regulatory approval in the second quarter of 2002. <BR>The principal corporate headquarters of the enlarged company will be in Miami, with a significant corporate office in London.<BR><BR>Royal Caribbean is the larger company of the two, with annual gross revenues of $3.13bln to P&O Princess revenue of $2.45bln. It also has 23 ships compared to its merger partner's 18 ships<BR>

xxxx

Is this merger a reflection on how badly Royal Caribbean are/were performing. Here in the UK they are selling 2 weeks Caribbean balcony cabins for &pound;399 (approx $500). They cannot survive on these yields. <BR>You also have to question the clientele they will attract at these fares and what cuts will be made to the on board product.

Paul Therault

Cruise prices have declined across the board, not just in Europe. The downward trend will not continue.<BR><BR>I doubt the food and service will change drastically. The two companies will continue to operate as separate entities. Same as RCCL and Celebrity.<BR><BR>Paul<BR><BR>

xman

xxxx they have already attracted the kind of people your innuendo is implying. Vegas has more class.

Mitch

..wow, your nose is stuck so high in the air, I thought you had a nosebleed xxx! <BR><BR>Just one of the "proletariat".