Starwood Accepts $13B Anbang Bid, Marriott to Counter

By Paul Riegler on 18 March 2016
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The W Austin, a Starwood property

The W Austin, a Starwood property

Starwood Hotels and Resorts won’t be checking in with Marriott International.

The Stamford, Connecticut-based company said Friday it had received and would accept a $13.2 billion takeover bid from a Chinese consortium led by Anbang Insurance Group, terming it a “superior proposal” to Marriott’s $10.8 billion cash-and-stock merger from last November.

The group led by Anbang will pay $78 a share in cash, according to a statement released Friday. The bid is $2 more per share than the original bid the group made at the start of the week, and is significantly more than Marriott’s cash-and-stock deal, worth about $68 a share.

Starwood notified Marriott that it intends to terminate the Marriott merger agreement and proceed with Anbang. Marriott now has until March 28 at 11:59 p.m. EDT to submit a counterbid.

The Anbang bid would represent the largest-ever acquisition of a U.S. company by a Chinese concern. It would require regulatory approval from the Committee on Foreign Investment in the United States (an interagency committee, headed by the Department of the Treasury, that includes the Justice, Homeland Security, Commerce, Defense, and State departments, among others), which oversees foreign acquisitions that could potentially pose threats to national security.

The Chinese investor group also includes Primavera Capital and J.C. Flowers.

The news comes on the heels of news that Anbang had agreed to buy Strategic Hotels and Resorts from the Blackstone Group in a $6.5 billion deal months after Blackstone itself acquired the company.

Strategic Hotels owns 18 luxury properties, 17 in the United States and one in Germany, including the JW Marriott Essex House, Ritz-Carlton Half Moon Bay, the Ritz-Carlton Laguna Niguel, the InterContinental Chicago, and Four Seasons hotels in Austin, Texas and Washington, D.C.

Last summer, Microsoft co-founder Bill Gates unsuccessfully attempted to acquire control of Strategic Hotels.

(Photo: Accura Media Group)

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