Carnival Corp confirms joint venture delays

Carnival Corp has conceded that its proposed joint ventures with Germany’s TUI and Spain’s Iberojet will not close in 1H07 as previously planned. Spokesman Tim Gallagher confirmed to Fairplay that the TUI cruise venture’s schedule has been pushed back by the merger plans announced between TUI and UK-based First Choice. Before the Carnival-TUI deal can be finalised, the European Commission must first rule on the TUI-First Choice merger, after which Carnival then will seek clearance for its TUI venture with German regulators. Thus, the closing on the German cruise brand deal is now expected before year-end. The revised process may in turn push back the delivery of the first TUI newbuilding from 2010 to 2011, Gallagher confirmed. Meanwhile, Carnival Corp’s transaction with Spain’s Iberojet may first have to be cleared by Spanish competition officials. If this approval is required, then the Spanish joint venture could be finalised between summer and year-end, depending upon the regulatory review timetable, acknowledged Gallagher.