Marriott International, third largest hotel company worldwide, and the seventh one Starwood Hotels, have finally signed the commitment they made last November to merge and that last week stumbled when it appeared a Chinese consortium, led by Anbang, to acquire Starwood Hotels .
Marriott International, Inc. and Starwood Hotels and Resorts Worldwide have declared that the European Union has given antitrust clearance to their pending merger. Last November, Marriot inked a definitive merger to purchase Starwood and create the world’s largest hotel company.
Both the companies had already received the green signal from antitrust regulators in the United States, Canada and other regions. With this clearance issued in a press release by the European Commission, the merger deal is likely to close in Jul 2016.
Stockholders of both the companies approved the proposed acquisition at their individual shareholders meet in April. While 97% of Marriott’s shareholders voted in favour of the proposal, 95% of Starwood stockholders approved the merger.
STARWOOD HOTELS Price
Per the approved deal, Starwood’s shareholders will receive 0.8 shares of Marriott along with $21.00 in cash for each share they hold. In addition, they will receive a separate consideration from the spin-off of the company’s timeshare business – Vistana Signature Experiences. Vistana Signature Experiences was acquired by Interval Leisure Group, Inc in May this year.
On completion, the combined entity would operate or franchise about 5,700 hotels with 1.1 million rooms globally, bringing together 30 brands catering to all lodging segments.
Marriott’s move to buy Starwood shows that the hospitality industry thrives on such blockbuster deals that are critical to their success at a time when online booking is becoming important in the lodging business. Larger hotel companies, boasting economies of scale, can bargain with online travel agents like Expedia, TripAdvisor and The Priceline Group’s Booking.com for better fees.
Until the merger is legally complete, the companies will keep on operating as separate and self-governing entities.
Etiquetas: Acquisition, M&A, Markets, Merger