Royal Caribbean Cruises (RCL.US) is rumored to be close to US$3 billion to acquire 50% of Sandals' shares to develop all-inclusive onshore vacation business

The Zhitong Finance App learned that, according to a source familiar with the matter, Royal Caribbean Cruises (RCL.US) is close to reaching a $3 billion deal to acquire 50% of Sandals' shares. The deal valued the Caribbean resort chain at $60 billion and is expected to boost growth for both companies, the source said. The source said negotiations are still ongoing and it may not be possible to reach a deal in the end.

Royal Caribbean Cruise shares fell about 6% on Tuesday following reports that the deal might be reached. The company's stock price fell about 25% over the past year after it lowered its revenue growth expectations due to weakening demand for European routes.

The cruise company has always been committed to diversifying beyond cruises and is a leader in the field of integrated vacations. Royal Caribbean Cruises already operates a number of private destinations for its cruise passengers, but has been working hard to expand its onshore business.

Sandals and its Beaches brand have more than a dozen properties in the Caribbean, which will give Royal Caribbean a foothold in the “all-inclusive” sector.