Global hotel giant Starwood has received a surprise US$12.8bn (€11.5bn, £8.9bn) takeover offer from a group led by China’s Anbang Insurance Group, which could scupper its planned merger with Marriott.
In November 2015, Marriott announced
that it would buy Starwood Hotels & Resorts – whose brands include St. Regis, The Luxury Collection, W and Design Hotels – in a US$12.2bn (€11.4bn, £8bn) stock and cash transaction which would create the world’s largest hotel company.
However, today (14 March) saw the announcement of a rival bid from the Chinese-led consortium, which would pay US$76 a share in cash for all outstanding Starwood shares.
Marriott has provided a waiver for the rival discussion to take place, but has said that it is still committed to its offer for Starwood. Marriott also noted that it would be owed a US$400m cash termination fee if Starwood were to renege on its existing merger deal.
Under the terms of that deal, there is a time frame during which Starwood can consider other offers – that period expires at 11:59pm (EST) on March 17.
It has been reported that shareholders of Starwood and Marriott are expected to vote on the deal on March 28.
If Anbang were to be successful with its rival bid, the deal would mark the latest significant step into the hotel industry for the company, following its
purchase of the Waldorf Astoria hotel in New York in 2014 for US$1.95bn (€1.6bn, £1.2bn.
