Marriott, Starwood merger on hold pending Chinese review

Miami /
Aug.August 09, 2016 01:30 PM

A Chinese antitrust review is reportedly holding up the merger of Marriott International and Starwood Hotels & Resorts Worldwide, a deal which would form the world’s biggest hotel company.

According to the Wall Street Journal, Marriott agreed on Monday to delay the merger, responding to a request from China’s Ministry of Commerce for more time to complete its review of the deal.

The extended review period, which is Marriott and Starwood’s final obstacle before consummating the merger, could take up to 60 days.

Both companies said in an announcement their merger won’t cause antitrust issues in China, and that regulators from more than 40 countries including the U.S. and European Union have given approval.

The merger follows a heated bidding war earlier this year between Marriott and China’s Anbang Insurance Group Co., both of which were vying for control of Starwood and its 10 hotel brands including Sheraton, W, St. Regis and Westin.

In a surprising move, Anbang dropped out of its $14 billion bid, and Marriott’s proposal of a cash-and-stock purchase valued at $13.4 billion was approved shortly after.

The merger would create the world’s largest hotel company, with 1.1 million rooms spread across 5,700 properties. [Wall Street Journal]Sean Stewart-Muniz


Related Articles

arrow_forward_ios
South Beach Miami (Credit: iStock)

Miami hotels prepare for layoffs and other budget cuts as occupancy plummets

Miami hotels prepare for layoffs and other budget cuts as occupancy plummets
Shane Neman, and Mauricio Bello Richard Waserstein, with 525 Northwest 77th Street Marriott in Boca

Blackstone sells Marriott hotel in Boca Raton

Blackstone sells Marriott hotel in Boca Raton
Clockwise from left: AC Hotel Midtown Miami, E11even and the Gabriel Miami (Credit: iStock, Wikipedia)

$1K a night, easy: South Florida hotels score high rates for Super Bowl LIV

$1K a night, easy: South Florida hotels score high rates for Super Bowl LIV
Hyde Beach House Resort & Residences, Carlos Rosso and Drew Sims

Sotherly closes on acquisition of Hyde Beach House hotel space

Sotherly closes on acquisition of Hyde Beach House hotel space
West Palm Beach Marriott (Credit: iStock)

Marriott family sells West Palm hotel for $50M

Marriott family sells West Palm hotel for $50M
A conceptual rendering and Lon Tabatchnick

Margaritaville developer plans another Hollywood hotel despite opposition

Margaritaville developer plans another Hollywood hotel despite opposition
Daniel Rutois and Hyde Resort and Residences

Hyde Resort & Residences association strikes back at Sotherly Hotels

Hyde Resort & Residences association strikes back at Sotherly Hotels
Daniel Rutois and Hyde Resort and Residences

Sotherly Hotels sues Hyde Resort & Residences association president

Sotherly Hotels sues Hyde Resort & Residences association president
arrow_forward_ios

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

Loading...