Magic Circle firms Freshfields Bruckhaus Deringer and Allen & Overy are acting as holiday firms TUI Group and Royal Caribbean Cruises seek to expand their TUI Cruises joint venture into the luxury and expedition cruise market.

As part of the deal, TUI will contribute its 100% subsidiary Hapag-Lloyd Cruises into TUI Cruises for $1.3 billion, in a move that will “create a leading European cruise company with a current combined fleet of twelve ships”, according to a statement by the company.