Marriott, Starwood Tie-up Gets Chinese Approval
September 20 2016 - 9:52AM
Dow Jones News
By Anne Steele
Marriott International Inc. and Starwood Hotels & Resorts
Worldwide Inc. on Tuesday said China's antitrust authority approved
their pending merger, clearing the last regulatory hurdle to the
deal's closing, now expected before the market opens Friday.
The companies last month agreed to give the Chinese Ministry of
Commerce additional time to review the tie-up, per the agency's
request.
The transaction, which will create one of the world's largest
hotel companies, has received clearances from regulators
representing more than 40 countries world-wide, including the U.S.
and the European Union.
Starwood in March agreed to a sweetened cash-and-stock deal from
Marriott, then worth roughly $13.6 billion, after China's Anbang
Insurance Group Co. walked away from its all-cash $14 billion bid
to buy Starwood, a surprise move that capped a bidding war with
Marriott. Starwood chose to stick with Marriott's boosted offer,
which at the new price effectively forced Marriott to pay roughly
$1 billion extra for Starwood.
In the deal, Starwood shareholders will receive $21 in cash and
0.8 of a share of Marriott for each share of Starwood.
Starwood shares rose 1.3% premarket to $76.06; Marriott shares
were inactive at $63.34.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
September 20, 2016 09:37 ET (13:37 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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