Royal Caribbean is closing in on a $3 billion deal to acquire a 50% equity stake in Sandals, according to a person familiar with the matter. The person, who asked not to be identified because the talks had not been made public, said the deal values the Caribbean resort chain at $6 billion and was expected to boost growth for both companies. Talks are ongoing and may not result in a deal, according to the person. Royal Caribbean shares fell about 6% following reports of the potential deal, which was first reported by the Financial Times. The company’s shares are down about 25% over the past year after it cut its revenue growth forecasts due to lower demand for European travel. The cruise company has been intent on diversifying beyond cruises and becoming a leader in overall vacations. Royal Caribbean already operates several private destinations for its cruise passengers, but has been working to develop its land offering. Meanwhile, Sandals and its Beaches brand have more than a dozen properties throughout the Caribbean, which would give Royal Caribbean a foothold in all-inclusive options. Neither Royal Caribbean nor Sandals immediately responded to requests for comment. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
