Marriott, Starwood shareholders approve $13.6B deal
Published 1:38 pm Friday, April 22, 2016
It’s been a bumpy ride, but Marriott International has passed another milestone in its pursuit of Starwood Hotels & Resorts.
Shareholders of the two companies on Friday approved Marriott’s $13.6 billion plan to buy Starwood in a deal that would create the world’s largest hotelier.
The vote of confidence comes just one week after a group led by China’s Anbang Insurance Group withdrew its $14 billion offer for Starwood, ending a weeks-long international bidding war. Bethesda, Maryland-based Marriott had originally announced plans to buy Starwood, which is based in Stamford, Connecticut, for $12.2 billion in November.
Under the current proposal, Starwood stockholders would receive 0.8 shares of Marriott’s stock, plus $21.00 in cash for each share of Starwood.
“With today’s successful stockholder approval milestone, we are that much closer to completing our transaction,” Arne Sorenson, chief executive of Marriott, said in a statement. “Our teams continue to plan the integration of our two companies, and we are committed to a timely and smooth transition.”
The deal, still awaiting a handful of regulatory approvals, including in the European Union and China, is expected to be completed in mid-2016. It would bring together 30 brands, including Marriott’s Ritz-Carlton, Courtyard and Renaissance Hotels with Starwood’s St. Regis, Sheraton and W Hotels.
“Today’s vote is a significant step toward closing,” Thomas B. Mangas, chief executive of Starwood, said in a statement. “There is no doubt that this transaction puts our company on the best path forward.”
More than 97 percent of Marriott shareholders and 95 percent of Starwood shareholders voted in separate meetings Friday morning.
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