Norwegian Cruise Line To Buy Two Upscale Brands, Remains Industry’s Third Largest In Size

(Patrick)

The cruise industry just got a little bit smaller now that three cruise brands have plans to become one.

Norwegian Cruise Line announced Tuesday that it reached a deal to purchase Oceania Cruises’ and Regent Seven Seas Cruises’ parent company Prestige Cruises International for $3.025 billion, USA Today reports.

The potential deal would provide mass-market line Norwegian a foothold in the upscale cruise line market. Both Oceania and Regent Seven Seas are known for their intimate and luxurious offerings.

Norwegian operates 13 large ships that carry as many as 5,000 passengers, while Oceania and Regent branded ships carry roughly 490 to 1,250 passengers. If the merger is successful Norwegian will operate a total of 21 ships.

Even with two new brands under its belt, Norwegian is a distant third when it comes to the cruise industry. Currently, Carnival Corp. controls half of the industry with 10 brands and 100 ships, while Royal Caribbean Cruises operates six brands and 42 ships.

The cruise industry has been marred by unfortunate headlines this year. In May, Norwegian’s own “Breakaway” cruise ship was stuck for hours in the Hudson River because it was unable to make it into port.

Prior to that incident, Royal Caribbean and Carnival each has ships return to port early because passengers fell ill.

Norwegian Cruise Line to buy Oceania, Regent Seven Seas [USA Today]