On Wednesday, Royal Caribbean Cruises (RCL.US) opened lower and extended losses, with the intraday decline exceeding 5% before paring to 3% at the time of writing. The drop came after the cruise giant announced a definitive agreement to acquire a 50% stake in Sandals Resorts International, an all-inclusive resort operator, for $3 billion, valuing the latter at $6 billion.

This transaction marks the largest in the company's history, underscoring its strategic push to diversify beyond sea-based cruises into the land-based vacation market. The stock has declined roughly 25% over the past year, following a downgrade in revenue growth projections tied to softening demand for European itineraries.

Under the terms of the statement, Royal Caribbean Cruises will hold a 50% interest in a newly established joint venture that controls Sandals' operations, while certain members of the Stewart family retain the remaining half of the control. The deal is expected to close in early 2027.