Out with a bang: Anbang reportedly ends bid for Starwood

Chinese insurer had offered $14B for hotel company

New York /
Mar.March 31, 2016 05:30 PM

Anbang Insurance Group is reportedly giving up on its bid to take over Starwood Hotels & Resorts. The move likely ends a two-week bidding war with Marriott International that grabbed headlines around the world.

The Wall Street Journal broke the news late Thursday afternoon.

The decision to end the deal comes a week after Chinese news site Caixin reported that China’s insurance regulator could reject a takeover, citing rules that limit insurance companies to invest no more than 15 percent of their assets abroad. The New York Times also recently questioned the deal’s feasibility, arguing that Starwood would have few options to enforce it.

Starwood has yet to confirm that Anbang is withdrawing its bid. The Wall Street Journal report cited unnamed sources close to the talks.

Anbang, known for its opaque ownership and aggressive expansion over the past two years, launched a bidding war for Starwood with an unsolicited $13.2 billion offer two weeks ago. Marriott had agreed to buy the rival hotel company last year, but the deal hasn’t closed yet.

Starwood accepted Anbang’s offer, but last week Marriott responded with a new bid worth $13.6 billion. On Monday, Anbang again raised its offer, this time to $14 billion, before withdrawing its bid Thursday.

Despite its Starwood ambitions falling through, Anbang won’t end March empty-handed. Earlier this month, the firm agreed to buy 16 U.S. hotels, including the Essex House on Central Park South, from Blackstone Group for $6.5 billion. Anbang already owns the Waldorf Astoria hotel, which it bought from Blackstone for $1.95 billion last year. — Konrad Putzier


Related Articles

arrow_forward_ios
ASAP Holdings CEO Frank Yuan and LaGuardia Marriott
LaGuardia Marriott and development site combo sell for $100M
LaGuardia Marriott and development site combo sell for $100M
Marriott International CEO Arne Sorenson (Getty)
Marriott CEO Arne Sorenson, who pushed worldwide expansion, dies
Marriott CEO Arne Sorenson, who pushed worldwide expansion, dies
525 Lexington Avenue and Deka bank CEO Michael Rüdiger (Photos via Google Maps, Getty Images)
German lender forecloses on East Side Marriott hotel
German lender forecloses on East Side Marriott hotel
325 West 33rd Street and Magna Hospitality CEO Robert Indeglia (Google Maps; Magna Hospitality)
Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M
Wells Fargo sells Penn Plaza hotel leasehold mortgage for $51M
Ken TaeHern Kim and Zhongyuan Li with Fairmont San Francisco (Linkedin, Google Maps)
Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal
Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal
Photo illustration of Arne Sorenson (Getty, iStock)
Marriott CEO wants workers back in offices — and traveling for business
Marriott CEO wants workers back in offices — and traveling for business
Courtyard by Marriott in Herald Square and Marriott CEO Arne Sorenson (Google Maps, Getty)
Courtyard by Marriott in Herald Square to close permanently
Courtyard by Marriott in Herald Square to close permanently
Ken TaeHern Kim, Zhongyuan Li and the Hyatt Regency Waikiki Beach (Linkedin, Google Maps)
Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal
Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...