Are the final bets in? The merger between Marriott and Starwood, which was put on hold for a while because of the higher offer made by the Chinese insurance group Anbang to Starwood Hotels shareholders, should now be completed. While Marriott had until 28 March to make a higher bid, the hotel group has decided not to put 12.2 billion dollars on the table, but 13.6 billion - 400 million more than Anbang - to take over its American competitor and create a giant with over a million rooms worldwide.
Under the terms of the amendment to the initial offer signed by the two groups, the takeover will be paid for with 3.6 billion in cash and 10 billion through a share exchange. Starwood Hotels shareholders will no doubt be satisfied with this bonus, even if Anbang, which may still bid higher, has not officially given up. However, the termination fee that Starwood would be required to pay if the merger is not completed has been increased to 450 million dollars, instead of 400 million. Initially scheduled for 28 March, Starwood's shareholders' meeting, which should definitively seal this agreement, has been scheduled for 8 April.
While Marriott CEO Arne Sorenson said he was "even more excited about the combined power of the two groups and the opportunities for growth", Starwood Chairman Bruce Duncan said he was pleased that Marriott had "recognised the value" his group brings to the merger.
