A Chinese insurance company has made a late bid to acquire Starwood Hotels & Resorts.
Marriott International agreed a US$12.2 billion deal for Starwood late last year, in a move that would create the world’s largest hotel group. But the Wall Street Journal reports that a consortium led by Anbang Insurance Group has now made a bid worth approximately US$13bn for the company, whose brands include Sheraton, Westin, St Regis and W Hotels.
Anbang previously made waves in the hotel industry when it acquired New York’s Waldorf Astoria hotel for US$1.95bn in 2014. The company has also agreed to buy Strategic Hotels & Resorts, the US-based luxury hotel owner, from Blackstone Group for approximately US$6.5bn.
Whether the Starwood bid is accepted however, remains to be seen. Marriott released a statement this week saying that it is aware of the “unsolicited” Chinese bid, but said it is “confident” that its merger with Starwood will go ahead.
“Marriott notes that this unsolicited indication of interest is highly conditional and non-binding,” the company said. “Marriott will monitor this development as it and Starwood continue to work toward the closing of its transaction and the successful integration of the two companies.”
Starwood meanwhile, has stated that its board of directors has “not changed its recommendation in support of Starwood’s merger with Marriott”. Although it added that it would “carefully consider the outcome of its discussions with the [Chinese] consortium in order to determine the course of action that it determines is in the best interest of Starwood and its stockholders”.
The Wall Street Journal said it contacted Anbang regarding the Starwood bid, but that the company declined to comment.
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