Stamford-based Starwood Hotels & Resorts Worldwide and Marriott International of Bethesda, Md., have announced that the shareholders of both companies have approved Marriott”™s bid to purchase Starwood for $13.6 billion to create the largest hotel company in the world.
The announcement on April 8 follows a bidding war between Marriott and a consortium of investors led by the Chinese insurance group, Anbang, which came to a halt with Anbang”™s withdrawal at the end of March of its 13.9 billion all-cash offer citing “various market conditions.”
According to a statement issued by both companies, holders of over 97 percent of Marriott shares present and voting at the meeting, representing over 79 percent of outstanding shares, voted in favor of a proposal to issue shares of Marriott common stock in connection with the transaction, and holders of over 95 percent of Starwood shares present and voting at the meeting, representing over 63 percent of outstanding shares, voted in favor of a proposal to approve the transaction.
Arne Sorenson, Marriott”™s president and chief executive officer, said, “With today”™s successful stockholder approval milestone, we are that much closer to completing our transaction. Our teams continue to plan the integration of our two companies, and we are committed to a timely and smooth transition. We appreciate the stockholders”™ vote of confidence in our ability to drive long-term value and opportunity as a combined company.”
Once closed, the deal will create the world”™s largest hotel company with 1.1 million rooms in more than 5,500 international hotels.
In November 2015 Marriott and Starwood agreed to a deal worth $12.2 billion before being outbid by the Anbang consortium including investment firms J.C. Flowers & Co. of New York and Primavera Capital Limited of China.
Following a counter bid, which has remained in place since Anbang”™s withdrawal, Marriott will pay an estimated $13.6 billion including $21 in cash per share.
What will come of Starwood’s approximately 800 Stamford employees remains to be seen, although representatives for the company have said that Marriott has committed to maintaining Starwood’s corporate office at 1 Star Point, and a presence in Stamford,  at least through 2016.
