CHINA'S Anbang Insurance Group Co has abandoned its US$14
billion bid for Starwood Hotels & Resorts Worldwide Inc, paving
the way for Marriott International Inc to buy the Sheraton and
Westin hotels operator.
The surprise withdrawal marks an anticlimactic end to a bidding
war that had pitted Marriott's goal to create the world's
largest lodging company, with about 5,700 hotels, against
Anbang's aim to build a vast array of US real estate assets. It
also represents a blow to Chinese companies' growing ambitions
to acquire US assets.
Anbang's acquisition of Starwood would have been the largest
takeover of a US company by a Chinese buyer.
"We were attracted to the opportunity presented by Starwood
because of its high-quality, leading global hotel brands, which met
many of our acquisition criteria, including the ability to generate
consistent, long-term returns over time," Anbang said in a
"However, due to various market considerations, the
consortium has determined not to proceed further," Anbang
added, referring to the joint bid it had put together with private
equity firms JC Flowers & Co and Primavera Capital Ltd.
Anbang did not offer Starwood a reason for not following through
on its raised offer of March 26, according to people familiar with
the matter. They asked not to be identified disclosing confidential
"The reason of withdrawal is simple — Anbang
isn't interested in a protracted bidding war," Fred Hu,
chairman of Primavera, said in an e-mail.
It was not immediately clear if Marriott had been planning a
counterbid to Anbang's March 26 offer. Anbang has previously
bowed out of smaller deals, but this is the most high-profile deal
it has abandoned, people familiar with the matter said.
Starwood said on Monday that Anbang had raised its offer to
almost US$14 billion. Anbang had been expected to firm up that
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The failure of a party to call a witness does not necessarily give rise to an adverse inference being drawn in accordance with Jones v Dunkel (1959) 101 CLR 298. An unfavourable inference is drawn only if evidence otherwise provides a basis on which that unfavourable inference can be drawn.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).