Royal Caribbean is nearing a $3 billion deal to take a 50% equity stake in Sandals, according to a person familiar with the matter.

The person, who asked not to be named because the talks had not been made public, said the deal values the Caribbean resort chain at $6 billion and that it was expected to boost growth for both companies. The talks are ongoing and may not result in a deal, according to the person.

Royal Caribbean shares fell roughly 6% on reports of the potential deal, which was first reported by the Financial Times.

The company's stock is down roughly 25% over the past year after it trimmed its forecasts for revenue growth on softer demand for European sailings.

The cruise company has been intent on diversifying beyond cruises and becoming a leader in vacations overall. Royal Caribbean already operates several private destinations for its cruise passengers, but it has been working to build out its land offerings.

Sandals and its Beaches brand, meanwhile, have more than a dozen properties across the Caribbean, which would give Royal Caribbean a foothold in all-inclusive options.

Neither Royal Caribbean nor Sandals immediately responded to requests for comment.