CARNIVAL Corporation, the world's largest cruise company, has become outright owner of shipping line, Cunard, which has its European headquarters in Southampton, in a multi-million dollar deal.

The move is good news for Southampton docks as it underlines Carnival's commitment to Cunard's ambitious Project Queen Mary to build the first true ocean-going liner for more than three decades, which will be based in the port.

Last year the Miami firm acquired a 68 per cent interest in Cunard.

Since then it has been so impressed with the operation that it has now exercised its option of buying the other 32 per cent which had been previously held by a group of Scandinavian investors in a cash and shares agreement worth $205 million.

Carnival was known to have been delighted at bringing Cunard and its top-of-the-market vessels, including Southampton's five-star Queen Elizabeth 2 (pictured), into its Florida empire when the shipping line was bought for $500 million in May 1998.

Carnival, along with a group of Norwegian investors led by Christiania Markets, purchased Cunard from shipbuilders Kvaerner.

Simultaneous with the purchase, Carnival's Seabourn fleet was merged with Cunard to form the industry's largest luxury ship operator.

According to Carnival Corporation chairman and chief executive officer, Micky Arison, the purchase of the remainder of Cunard was being made in anticipation of the future expansion of the brand.

"Considering the strength of the Cunard brand and its plans to build the largest ocean liner in the world to complement Queen Elizabeth 2, it simply makes sense for Carnival to own 100 per cent of Cunard,'' said Mr Arison.

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