Marriott-Starwood merger back on track
The merger of Marriott International and Starwood Hotels & Resorts, which will create the world's largest hotel company, is set to go ahead after the Chinese-based Anbang Insurance Group withdrew its offer for Starwood.
Anbang, which was leading a consortium comprising private equity companies JC Flowers & Co and Primavera Capital, abandoned its attempt to acquire Starwood last night nearly three weeks after it entered the race to buy the portfolio of 1,300 hotels. It said it was stepping away from the frenzied negotiations due to “market considerations”.
Now the deal involving Marriot's acquisition of Starwood, which was first announced in November 2016, is back on. However, the price has moved up considerably as a result of Anbang gatecrashing the merger talks and pushing up the price, to the delight of shareholders. The original agreed bid of $12.2b (£8b) has now risen to $13.6b (£9.5b).
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Originally posted 1 April 2016 by The Caterer