Celebrity Agrees to Royal Caribbean Merger

Overseas Shipholding Group Inc. said it signed a definitive agreement to merge its Celebrity Cruise Lines Inc. with Royal Caribbean Cruises Inc. in a transaction valued at $1.3 billion. Under the agreement, Royal Caribbean will buy Celebrity for $245 million in cash, $800 million in assumed debt and the balance in Royal Caribbean stock. Royal Caribbean, the industry’s second-largest cruise line, announced last month it would buy Celebrity. The announcement comes a week after Royal Caribbean rival Carnival Corp., the world’s biggest cruise line, offered to buy Celebrity for $1.3 billion. Royal Caribbean has said it’s buying Celebrity to strengthen its North American cruise business and expand in Europe. Shares of Miami-based Royal Caribbean fell 12.5 cents to close at $34.625 on the NYSE. Shares of New York-based Overseas Shipbuilding were unchanged at $20.06, also on the NYSE.