EU approves Princess-Carnival merger

ACCORDING to Internet news reports, Carnival Cruises, already the world’s biggest cruise line, is expected to merge with P&O Princess Cruises to become an even more powerful cruise company . Reports say that Carnival’s $5.5 billion bid for Princess has been approved by regulators for the European Union (EU) and only requires antitrust approval in the United States before the merger is carried through. The cruise line’s bid was substantially greater than rival Royal Caribbean’s $3.7 billion offer. Recently, major players in the cruise industry and travel fanatics waited in anticipation to see whether Royal Caribbean or Carnival would be found an appropriate ‘suitor’ for single Princess, with cruise fundis being fully aware of the great impact either merger could have on the cruise world. At first glance, it would seem that the Carnival-Princess merger would create a monopoly in the cruise market. However, the EU reportedly said on Wednesday, that factors such as the strong growth in the cruise market and the lack of substantial barriers for new entrants into the cruise industry, will ensure that sufficient competitive pressure will continue to be exerted on Carnival. (Heather Ruddock)