China ap­proves Mar­riott deal for Star­wood

China Daily (USA) - - ACROSS AMERICA -

Mar­riott In­ter­na­tional Inc an­nounced on Tues­day that Chi­nese an­titrust reg­u­la­tors ap­proved its deal to ac­quire Star­wood Ho­tels & Re­sorts World­wide Inc, clear­ing the way for the com­bined com­pany to be­come the world’s largest ho­tel chain.

China’s Min­istry of Com­merce re­view was the only re­main­ing merger clear­ance for the deal after the com­pa­nies se­cured ap­provals from more than 40 coun­tries, in­clud­ing the United States and Canada.

The merged group would be­come the largest ho­tel op­er­a­tor in China with a 4.1 per­cent mar­ket share, fol­lowed by Homeinns Ho­tel & Man­age­ment at 4 per­cent and China Lodg­ing Group at 3.9 per­cent, data from re­search firm Euromon­i­tor In­ter­na­tional showed last month.

The com­bined com­pany will have an en­ter­prise value of $36 bil­lion and more than 5,500 ho­tels with 1.1 mil­lion rooms.

China’s An­bang In­sur­ance Group Co aban­doned its pur­suit for Star­wood in April after a bid­ding war with Mar­riott.

Mofcom has blocked two trans­ac­tions since China’s anti-mo­nop­oly law came into force in 2008, com­pared with 1,447 un­con­di­tional clear­ances, ac­cord­ing to data com­piled by law firm Nor­ton Rose Ful­bright.

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