STAMFORD, Conn. — Starwood Hotels & Resorts Worldwide, Inc. has received a buyout offer from a consortium of companies led by the Chinese firm Anbang Insurance Group, worth approximately $14 billion.
Anbang has been quickly establishing itself within the U.S. hotel industry, purchasing the Waldorf Astoria in Manhattan for nearly $2 billion in 2014. The company also entered into a $6.5 billion deal to buy Strategic Hotels & Resorts Inc. earlier this month.
Starwood and Marriott International Inc. recently announced that they had achieved key milestones in the antitrust review of the companies’ $12.2 billion merger agreement announced last fall. In response to the new offer, Marriott has granted Starwood a waiver to evaluate the proposal from the interested parties, which expires at midnight on March 17.
Starwood issued a statement on Monday saying its Board of Directors had not changed its recommendation in support of Starwood’s merger with Marriott.
Both Starwood and Marriott stockholders are scheduled to vote on the integration of the two companies on March 28. Should Starwood end its agreement with Marriott or change its recommendation for shareholders to vote in favour of the Marriott transaction, Starwood stands to pay a $400 million termination fee.