Starwood Hotels & Resorts Worldwide has accepted a higher $13.6 billion acquisition offer from Marriott International, creating the world’s largest hotel chain.
Marriott had struck a $12.2 billion deal to acquire Starwood Hotels & Resorts in November. But just last week, a consortium led by China’s Anbang Insurance Group offered $13.2 billion for the company at $78 per share.
Marriott responded today with a new amended merger, under which it raised its offer to $21 per share, valuing the total bid at $13.6 billion, or $79.53 per share. The offer also includes $3.6 billion in cash and $10 billion in Marriott stock.
“After five months of extensive due diligence and joint integration planning with Starwood, including a careful analysis of the brand architecture and future development prospects, we are even more excited about the power of the combined companies and the upside growth opportunities,” says Arne Sorenson, president and CEO of Marriott International. “We expect to accelerate the growth of Starwood’s brands, leveraging Marriott’s worldwide hotel development organization and owner and franchisee relationships.”
Adds Bruce Duncan, Starwood’s chairman of the board of directors: “Throughout this process, our board of directors has remained laser‐focused on maximizing value for Starwood shareholders, and Marriott’s revised offer provides the highest value to our shareholders through long‐term upside potential from shared synergies and ownership in one of the world’s most respected companies, as well as significant upfront cash consideration.”
The amended merger agreement prohibits Starwood from engaging in discussions or negotiations with, or providing confidential information to the consortium.
Assuming receipt of the necessary approvals, Starwood and Marriott continue to expect the transaction to close in mid‐2016.
