New York: US-based Marriott International said Monday that it has purchased Starwood for $12.2 billion, creating the world's largest hotel chain bringing together such famous institutions as Ritz-Carlton, Renaissance, W, Westin and Sheraton.
The boards of directors of both companies unanimously approved the merger, under which the companies will operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide.
Starwood shareholders will receive 0.92 shares of Marriott International, Class A common stock and $2.00 in cash for each share of Starwood common stock, a joint statement from the companies read.
The merger "has a current value of $72.08 per Starwood share, including the $2 cash per share consideration."
Starwood shareholders will also receive about $7.80 per share from a transaction set to close prior to the Marriott-Starwood merger closing -- the spin-off of the Starwood timeshare business and its merger with Interval Leisure Group, which has an estimated value of approximately $1.3 billion.
AFP
