timespliters
26th September 2007, 01:44 PM
TUI AG and Carnival Corporation have ditched plans to create a joint venture cruise brand.
"Reason for the withdrawal is the extremely difficult environment with regards to competitive law making it impossible to close the transaction in Carnival's current business year," a statement said.
"Failure to do so would create adverse tax consequences for the companies and would have a severe impact on the economies of the transaction.
"TUI and Carnival have, therefore, decided not to implement the joint venture in the proposed form."
TUI AG will stick to its plans to expand its own cruise activities, mainly within the framework of Hapag-Lloyd Cruises which operates four ships.
In the British market, TUI's subsidiary, TUI Travel, also operates five ships under the Thomson Cruises brand as well as two under the Island Cruises brand.
from - TravelMole
"Reason for the withdrawal is the extremely difficult environment with regards to competitive law making it impossible to close the transaction in Carnival's current business year," a statement said.
"Failure to do so would create adverse tax consequences for the companies and would have a severe impact on the economies of the transaction.
"TUI and Carnival have, therefore, decided not to implement the joint venture in the proposed form."
TUI AG will stick to its plans to expand its own cruise activities, mainly within the framework of Hapag-Lloyd Cruises which operates four ships.
In the British market, TUI's subsidiary, TUI Travel, also operates five ships under the Thomson Cruises brand as well as two under the Island Cruises brand.
from - TravelMole