Daily Management Review

Stockholders Approve Merger of Marriott & Starwood Hotels to Create World's Largest Hotel Company


Stockholders Approve Merger of Marriott & Starwood Hotels to Create World's Largest Hotel Company
The stockholders of Starwood Hotels & Resorts Worldwide Inc and Marriott International Inc voted to approve Marriott's acquisition of Starwood to create the world's largest hotel company, the two companies said on Friday in the communiqué.
“Marriott International, Inc. and Starwood Hotels & Resorts Worldwide, Inc. announced that at separate special stockholder meetings today the stockholders of both companies approved proposals relating to Marriott's acquisition of Starwood, which will create the world's largest hotel company,” said the companies in a press release.
The entire deal that is valued at $12.41 billion as of Thursday was accepted by the stockholders in favor of a cash-and-stock deal. The companies said that More than 97 percent of Marriott shares and stock owners which represented over 79 percent of outstanding shares and over 95 percent of Starwood shares and stock holders which represented over 63 percent of outstanding shares, voted in favor of the cash-and-stock deal.
The way for Marriott to buy the owner of Sheraton and Westin hotel brands was cleared of all hurdles – barring the regulators, after China's Anbang Insurance Group Co last week abandoned its $14 billion offer for Starwood Hotels.
Setting the total value of the shares for their bid at $73.42 per share as of Thursday, Marriott had raised the cash portion of its offer to $21 per share on March 21 from $2 per share.  At closing Starwood stockholders will receive 0.8 shares of Marriott common stock plus $21.00 in cash for each share of Starwood common stock.
Pending completion of Starwood's planned divestiture of its timeshare business expected on or around April 30, 2016, Marriott said the deal was on track to close mid-2016.
"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," Arne Sorenson, Marriott's president and chief executive officer, said.
"Today's vote is a significant step toward closing, and we are grateful for the continued enthusiasm and support for this merger. There is no doubt that this transaction puts our company on the best path forward and we remain excited about the opportunity this combination will create for our stockholders, associates, owners and guests," said Thomas B. Mangas, Starwood's chief executive officer.
While awaiting the clearance for the pre-merger antitrust review in the European Union and China, the deal has already cleared the pre-merger antitrust review in the United States and Canada and multiple other jurisdictions.

(Source:www.reuters.com & www.businessinsider.com)