Receive our newsletter – data, insights and analysis delivered to you
  1. Market Data
March 22, 2016updated 19 Dec 2017 7:52am

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.

hotels

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.

“We are pleased that Marriott has recognised the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders.”

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.

Content from our partners
Untapped: How Turks and Caicos is primed for tourism investment
Untapped: How Turks and Caicos is primed for tourism investment
LG smart hospitality solutions in a post-COVID era

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.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU