Starwood accepts Marriott's latest $13.6bn acquisition offer
Starwood Hotels & Resorts Worldwide has accepted a $13.6bn acquisition offer from Marriott International, rejecting China's Anbang Insurance Group's $13.2bn bid.
According to the latest offer, shareholders of Starwood will receive $21 for every share of Starwood.
The latest offer from Marriott has considerably increased the cash it would pay to shareholders of Starwood; its previous offer had been 0.92 shares of Marriott for every share of Starwood and $2 in cash.
If Anbang's offer had been accepted by Starwood, it would have been the largest ever acquisition made by a Chinese company in the US.
Following extensive due diligence and joint integration planning, Marriott expects to achieve $250m in annual cost synergies within two years after closing the deal, which is up from an estimated $200m last November when the original merger agreement was announced.
The combined company is expected to have 1.1 million rooms in more than 5,500 hotels.
Marriott and Starwood have already obtained regulatory consents necessary to close the transaction, including clearing pre-merger antitrust reviews in the US and Canada.
Starwood Hotels & Resorts Worldwide chairman of the board of directors Bruce Duncan said: "We are pleased that Marriott has recognised the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders."
Image: The combined company is expected to have 1.1 million rooms in more than 5,500 hotels. Photo: courtesy of Marriott International.