Cruise Line Stocks Rally Amid Report Of Possible Takeover Interest From HNA

Major cruise line stocks surged Monday as traders circulated reports of acquisition interest by China’s HNA Group, which has already dipped its toes in the domestic cruise scene with Henna.

Rumors bolstered Royal Caribbean Cruises Ltd RCL 2.6 percent, Norwegian Cruise Line Holdings Ltd NCLH 2.3 percent and Carnival Corp CCL 1.2 percent.

Over the last few months, HNA Group has engaged in numerous M&A transactions in the travel space, with the firm taking a 16.8-percent stake in Dufry and an unknown stake in Rio De Janeiro’s airport last week. HNA Group also boasts stakes in Hilton Hotels, as well as Chinese and Singaporean airlines and airports.

A move in the cruise space would well complement the travel-heavy portfolio. The three potential targets dominate the global cruise market, with Carnival controlling 42.1 percent; Royal Caribbean, 22.8 percent; and Norwegian, 9 percent.