After a bidding war that went on for weeks between a consortium led by Beijing-based Anbang Insurance Group and Marriott International for Starwood Hotels & Resorts, Anbang withdrew its offer last night, paving the way for Marriott to move forward with the most recent agreement.
This marks a turn for Anbang, which upped its offer for Starwood to $13.9 billion earlier this week, as the company had been slowly making its mark in the U.S. hotel industry. The company purchased the Waldorf Astoria New York from Hilton Worldwide in October 2014 for $2 billion and in early March the company acquired Strategic Hotels & Resorts from Blackstone Group for $6.5 million.
“We were attracted to the opportunity presented by Starwood because of its high-quality, leading global hotel brands, which met many of our acquisition criteria, including the ability to generate consistent, long-term returns over time,” the consortium said in a statement. “However, due to various market considerations, the consortium has determined not to proceed further.”
Throughout the process, however, Starwood’s board of directors said it continued to unanimously support the existing merger with Marriott, which will create the largest hospitality company in the world.
“Our board is confident this transaction offers superior value for Starwood’s stockholders, can close quickly, and provides value-creation potential that will enable both sets of stockholders to benefit from future financial performance,” says Bruce Duncan, chairman of Starwood’s board. “We continue to be very excited about the combination of our two companies and are committed to completing this deal in an expeditious manner.”
Arne Sorenson, president and CEO of Marriott International adds: “We are focused on maximizing shareholder value and from the beginning of this process we have been steadfast in our belief that a combination with Starwood will offer the highest value to all shareholders. Together, we can provide opportunities for significant equity upside and great long-term value driven by a larger global footprint, wider choice of brands for consumers, substantial synergies, and improved economics to owners and franchisees leading to accelerated global growth and continued strong returns.”
Under the terms of the amended merger agreement, as announced on March 21, 2016, the transaction values Starwood at approximately $13.2 billion ($77.94 per share),
