Anbang Insurance checks in to the Starwood Hotels deal!

Proof that a deal is never completed until the final legal contracts have been signed has once again been demonstrated with the 11th hour bid for Starwood Hotels by China's Anbang Insurance that has literally emerged overnight.

The board of Marriot International had thought they had reached agreement with the shareholders of Starwood Hotels on a USD 12.2bn acquisition, to be paid for via a combination of cash and shares, only to find themselves waking up today to face a counter offer by Anbang reported to be an all cash bid of around USD 13bn.

This offer for Starwood by Anbang comes fresh of the back of another deal the company is pursuing in the hotel sector, with its USD 6.5bn purchase of Strategic Hotels & Resorts from Blackstone Group. Announcing two offers totalling nearly USD 20bn in two days is a tall order by any company's standards and I can't think of a similar situation like this in the 20+years that I have been involved in the fascinating world of M&A. However, it underlines that Corporate China is now looking outwards in its pursuit of growth, given the lower growth forecasts at home, and with less than a quarter of the year gone, if both of these deals proceed then deal values for Chinese buyers looking outside of China will be exceptionally close to exceeding last year's previously highest recorded values.

Filed under: corporate, dealmaking, hotels, M&A, China