Royal Caribbean Shares Down Following Report of Sandals Acquisition Talks

Dow Jones03:48

Shares of Royal Caribbean fell after the Financial Times reported that the cruise line is nearing a deal to acquire a majority stake in Sandals Resorts International.

Shares fell 5.9% to $235.61 in Tuesday afternoon trading following the FT's report. The stock is down 16% year-to-date.

The deal would value Sandals, which operates hotel resorts across the Caribbean, at upwards of $6 billion, the FT reported, citing people familiar with the matter.

The discussions have included relatives of the late Sandals founder Gordon "Butch" Stewart retaining equity holdings in the business, with the possibility that Royal Caribbean could take full control in the future, the FT reported.

The parties could reach a deal in the coming days, but may not come to an agreement, according to the FT's report. Neither company immediately responded to the newspaper's requests for comment.

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