After being outbid last week by China-based company Anbang, Marriott came back with a higher bid. The two companies have now signed an amended merger agreement.
Starwood Hotels & Resorts Worldwide has accepted a revised offer from Marriott International today, less than a week after news broke that a Chinese investment consortium had outbid the hospitality giant’s initial $10.8 billion offer.
Marriott had until March 28 to counter Anbang Insurance Group’s offer, and it did so quickly. At the time of Anbang’s offer, Marriott wrote in a statement that the company “continues to believe that a combination of Marriott and Starwood is the best course for both companies,” and that it is “carefully considering its alternatives.”
Word got this morning that a new deal has been signed between the two hotel companies, and Arne Sorenson, Marriott International's CEO, who will take over newly combined company, told USA TODAY that she was excited to come out on top. "We’re excited to get back on track and get this historic merger together. We think what we can accomplish together is just fabulous.''
Starwood Chairman Bruce Duncan released his own statement saying, “We are pleased that Marriott has recognized the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders.”
T+L already reported that if Marriott is successful with the purchase, it stands to become the largest hotel company in the world—with the largest luxury hotel portfolio—by acquiring brands like W Hotels, St. Regis, Westin, and Aloft, and adding them to its existing 19 brands, which include Ritz-Carlton, Edition, and Autograph.
The new bid from the hotel giant is $79.53 a share, $13.6 billion, up from Anbang's offer of $78 a share, or $13.2 billion.