Carnival Corp had good news and bad news to report on Sept. 5th about previously announced plans to expand its cruise ship offerings in the European cruise market.

On a disappointing note, Carnival announced it was dropping plans to develop and operate two cruise ship brands for German-speaking travelers as a joint venture with European tour operator TUI.

Carnival said "extremely difficult regulatory environment in Germany" made it impossible to close the deal this year, and the two companies had agreed to withdraw antitrust filings with German and Austrian cartel officials.

"As a result of the regulatory and tax issues Carnival and TUI have agreed not to proceed with the proposed joint venture but will continue to explore other opportunities," Carnival said in a statement.

Carnival said that instead, it would proceed with other plans to grow ln Germany including building new ships for its AIDA cruise line.

On the good-news side, Carnival said it expected to close a deal next week to build a cruise ship brand for the Spanish market with Orizonia Corporacion, Spain's largest travel company.

Carnival will own 75 percent of the venture, Iberocruceros, and contribute the Carnival cruise ship Celebration. Orizona, which will own 25 percent, will contribute its cruise ships Grand Mistral and Grand Voyager.