Carnival Mergers and Acquisitions

     Chapter 14 is a difficult chapter to discuss when discussing Carnival Cruise Line. Carnival Cruise Line has never merged or acquired any other company. However, Carnival Corporation has. When Carnival started in 1972, Ted Arison used a ship from the American International Travel Service and became a subsidiary of that group. However, in 1974, Ted Arison paid $1 million dollars to become a sole company and the other $5 million he owed AITS for its debt. Carnival continued to expand its own fleet until 1987.
     In 1987, Carnival purchased Holland America and Westours Cruise Lines. In 1992, Carnival acquired 20% of Seabourn cruises, and then bought the rest by 1999, becoming four companies under one umbrella. In 1993, Carnival turned from Carnival Cruise Line to Carnival Corporation. From 1992 to 2003, Carnival acquired all other brands through multiple years of buying majority stock then all stock. In 2003, with 10 total brands underneath the umbrella, they went public in stock. In 30 short years, Carnival Corporation has become the second largest cruise company due to its mergers and acquisitions.

Carnival's original ship, the Mardi Gras
One of the main reasons Carnival has merged and acquired so many companies is to stay the largest company. In 2001, P&O Cruise Company Europe decided to merge with Royal Carribbean, making it the largest cruise company as two giants merged. However, Carnival soon took that title back in 2003, buying the P&O cruises in all of the other areas including America, Australia, and two other lines. This made Carnival the largest line again where it still sits today.

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