Acquisition of Starwood by Marriott International

The acquisition of Starwood by Marriott International is one of the most tensed acquisitions in the year 2016 as Anbang abandoned its $14bn takeover offer for Starwood.
This acquisition created one of the biggest hotel companies in the world.
About Starwood Hotels & Resorts Worldwide, Inc. Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with nearly 1,300 properties in approximately 100 countries and approximately 188,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences under the renowned brands: St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Tribute Portfolio, Four Points® by Sheraton, Aloft, Element, along with an expanded partnership with Design Hotels. The company also boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG).
The purchase will create the largest hotel chain with 5,500 properties worldwide.
At closing Starwood stockholders will receive 0.8 shares of Marriott common stock plus $21.00 in cash for each share of Starwood common stock.
The merger would give the combined company scale to combat smaller and rapidly growing competitors such as Airbnb. Its new size would also allow the company to negotiate better fees with online booking sites including Expedia.
In the coming weeks, Marriott International has received authorization from a number of markets where Starwood Hotels & Resorts operates properties following its acquisition of the hospitality chain.
The only market Marriott has not received pre-merger authorization from is China. Until authorization clearance is given, Marriott and Starwood will continue to work within the Chinese regulatory agency’s guidelines and will close the merger transaction when given official clearance by China.
Until legal close, expected this month, Marriott and Starwood will continue to operate as separate companies
BY: DEVIKA SHARMA