A US$13 billion cash offer from China’s Anbang Insurance Group Co for Starwood Hotels & Resorts has trumped that of Marriott International, it has been confirmed.
The new offer, which sets the stage for the largest-ever deal by a Chinese company in the US, beat the existing offer by almost 15%, with the operator of the Sheraton, Westin and W brands confirming it planned to accept the higher bid.
The deal will add 1300 worldwide hotels to Angbang’s growing hotel portfolio.
If Starwood walks away from the deal with Marriott, it will have to pay it a $400 million breakup fee, Reuters has reported.
Meanwhile Marriott has until March 28 to counter Anbang’s offer. The hotel giant has confirmed it is considering its options.