Carnival, one of the world’s largest cruise vacation companies, has cancelled plans to form a joint venture in Germany with tour operator TUI.

The scheme, which Carnival has terminated citing “Germany’s extremely difficult regulatory environment”, would have seen the two companies develop a new cruise brand for the German market.

According to a spokesperson, the two companies would not have been able to complete the venture in the current fiscal year, creating a vulnerability to "adverse tax consequences."

However, Carnival and TUI are currently looking at other alternatives to form a business relationship within the German market.

Meanwhile, Carnival has finalised an agreement a multi-ship partnership with Orizonia, one of Spain’s largest travel companies.

The deal will see the development of a joint venture, called Iberocruceros, with Carnival having a controlling share of 75 per cent and Orizonia a 25 per cent share.

The new company will operate three ships and itineraries are to be announced later this year.