The deal is expected to close by the middle of this year and is subject to closing conditions and regulatory approvals.
The transaction is expected to accelerate the expansion of the JV. Owing to decreased global shipbuilding capacity, the three deliveries of TUI Cruises’ Mein Schiff fleet are expected to be delivered by 2023, 2024 and 2025 respectively.
TUI CEO Fritz Joussen said: “The ships’ identities, service, quality and customer experience will remain as individual and unique as they are today. This will create significant advantages for the group, for our expansion and for our investments.”
Following the merger, the cruise company will have a total of 12 ships in its combined fleet.
The JV will serve the premium German sector while Hapag-Lloyd Cruises will continue to serve the luxury and expedition ship demand with two luxury ships and three expedition ships.
Joussen added: “Products and brands such as MS Europa and MS Europa 2 have international potential and appeal.
“Going forward, this will enable us as shareholders to take a capital-light approach to financing the ships and international growth within a joint venture framework.”