China approves Marriott deal for Starwood
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.