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.
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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.