China’s Anbang Insurance Group Co has announced they have abandoned their $14bn bid to acquire Starwoods Hotels & Resorts Worldwide Inc, clearing the way for Marriott International Inc to buy the hospitality giant.
The announcement marks an end to a high-stakes bidding war that saw Mariott and Anbang duke it out to acquire the Sheraton and Westin hotels operator. Mariott has emerged victorious, cementing their ambitions to create the world’s largest lodging company comprising approximately 5,700 hotels.
Anbang’s withdrawal also marks a setback in corporate China’s bid to acquire more US assets. The insurance company’s acquisition would have been the largest Chinese takeover of a US company. Anbang did not provide a reason for its withdrawal after raising its initial offer on March 26.
It had not been clear if Marriott had planned to make a counterbid against Anbang’s March 26 offer. Anbang has withdrawn from smaller deals in the past, but this represents the most high-profile deal it has abandoned so far.
