Why Royal Caribbean Cruises Ltd. Stock Rose Today

What happened

Shares of Royal Caribbean Cruises Ltd. (NYSE: RCL) were riding a rising tide today after the company announced an acquisition, taking a majority stake in luxury cruise line Silversea Cruises. As a result, the stock closed up 5.1%.

Three Royal Caribbean cruise ships at sea

Image source: Royal Caribbean.

So what

Royal Caribbean said it would take a two-thirds stake in Silversea for about $1 billion, which gives it exposure to growth areas in luxury and expedition cruising. Silversea has nine vessels, with its largest ship holding 600 passengers; its executive chairman Manfredi Lefebvre D’Ovidio and CEO Roberto Martinoli will continue in their current roles as Royal Caribbean becomes the majority owner.

Royal Caribbean CEO Richard Fain said: “Silversea is a crown jewel, and the…

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