Starwood Hotels and Resorts Worldwide said on Monday it has agreed to a higher $13.6 bn (€12 bn) buyout offer from Marriott International, spurning a previous proposal from China's Anbang Insurance Group.
Starwood Hotels and Resorts Worldwide said on Monday it has agreed to a higher $13.6 bn (€12 bn) buyout offer from Marriott International, spurning a previous proposal from China's Anbang Insurance Group.
The new stock-and-cash offer is worth $79.53 per share, slighly above Anbang's all-cash $78 per share bid.
The Marriott-Starwood deal will create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton and Autograph Collection. In November Marriott offered $12.2 bn, or $72.08 per share, for Starwood.
The new combine will operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. It will combine Starwood's lifestyle brands and international footprint with Marriott's strong presence in the luxury and select-service tiers, as well as the convention and resort segment.
Starwood shareholders will receive $21.00 in cash and $0.80 shares of Marriott Class A common stock for each share of Starwood common stock, Marriott said. They are expected to own 34% of the combined company’s common stock after completion of the merger, based on current shares outstanding.
Starwood’s chairman, Bruce Duncan, said the company was pleased Marriott had 'recognised the value' Starwood brought to the merger.
Arne Sorenson, president and CEO of Marriott International, said: 'After five months of extensive due diligence and joint integration planning with Starwood, we are even more excited about the power of the combined companies and the upside growth opportunities. We expect to accelerate the growth of Starwood’s brands, leveraging Marriott’s worldwide hotel development organization and owner and franchisee relationships.'
Connecticut-based Starwood Hotels manages a total of 1,270 hotels worldwide and owns 36 hotels with a total of 13,500 rooms. A dozen of the owned hotel assets are located in Continental Europe or in the UK. Starwood Hotels controls the St. Regis, Westin, Sheraton and W Hotels brands.
The transaction is expected to close in mid-2016.
