Shares in German travel-to-shipping company TUI fell about 2% on Monday after it agreed to buy CP Ships of Canada for $2bn (£1.1bn; 1.7bn euros).
TUI is optimistic about the outlook for both shipping and tourism
Already Europe's biggest travel firm, TUI is looking to increase the size of its container shipping operations.
The company said the acquisition would turn its Hapag-LLoyd business into one of the world's five biggest shippers.
TUI said it would sell shares worth 1bn euros (£677m; $1.1bn) to existing shareholders to finance the cash deal.
The bid values CP Ships' shares at $21.50 each, 10% more than Friday's closing share price.
Once they have merged, the two firms will have a fleet of 139 ships, with another 17 already ordered.
They also will have a stronger presence in the North Atlantic, Asia Pacific and South America.
"Our enlarged shipping business will be well positioned to take advantage of the strong long-term growth dynamics in the container shipping industry," TUI's chief executive Michael Frenzel said in a statement.
"This is both a compelling financial and strategic opportunity for us."
The company said that it expects to see growth in both its tourism and shipping businesses.
TUI tweaked its strategy regarding Hapag-Lloyd last year and cancelled plans to sell as much as 49.9% of the company to investors citing weak market conditions.