BETHESDA, Md. — Marriott International, Inc. and Starwood Hotels & Resorts Worldwide, Inc. have signed an amended merger agreement worth $13.6 billion.
This new deal comes just days after Starwood received a proposal from a Chinese investment group led by Anbang Insurance Group that was considered superior to its original $12.2 billion merger agreement with Marriott.
“We are pleased that Marriott has recognized the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders,” says Bruce Duncan, Chairman of the Board of Directors of Starwood. “We continue to be excited about the combination of Starwood and Marriott, which will create the world’s largest hotel company with an unparalleled platform for global growth in the upscale segment. We are also pleased with the progress the two companies have made toward closing.”
Based on the current agreement, Starwood shareholders will own approximately 34 per cent of the combined company’s common stock after completion of the merger. The Marriott team expects to achieve $250 million in annual cost synergies within two years after closing, up from $200 million estimated in November 2015 when announcing the original merger agreement.