The Sheraton Stamford Hotel
THE consortium led by Anbang Insurance Group has withdrawn its US$14 billion bid for Starwood Hotels & Resorts Worldwide, opening the way for Marriott International to merge with the international hotel chain to form the world’s largest hospitality company.
China’s Anbang, along with Primavera Capital Group and J.C. Flowers & Co., had only days earlier raised its offer for Starwood in a move to outbid rival Marriott.
According to a statement by Starwood released yesterday, Anbang pulled out of the bidding war “as a result of market considerations” and added that they do not intend to make another proposal.
Starwood’s shareholders are slated to vote on and approve the Marriott-Starwood merger as scheduled on April 8, under the terms agreed upon on March 21, which currently values Starwood at approximately US$13.3 billion or US$77.94 per share.
Starwood shareholders will own approximately 34 per cent of the combined company’s common stock after completion of the merger, based on current shares outstanding.
Thomas Mangas, CEO of Starwood reaffirmed its commitment to Marriott, saying: “The existing merger agreement provides substantial value to our stockholders through significant upfront cash consideration and long-term upside potential from projected shared synergies, including US$250 million in cost synergies and significant revenue synergies, as well as ownership in one of the world’s most respected companies.”
