Marriott and Starwood Shareholders Approve Merger To Become World's Largest Hotel Company

After a dramatic last few weeks in which Marriott International nearly lost out on its quest to acquire Starwood Hotels & Resorts to Chinese insurer Anbang and its investor group, both hotel companies hosted their respective shareholder meetings April 8 to endorse their newly agreed upon merger pact. In separate meetings, shareholders from both Marriott and Starwood voted to approve the new combination. Stockholders of more than 97 percent of Marriott shares present and voting at the meeting, representing more than 79 percent of outstanding shares, voted in favor of a proposal to issue shares of Marriott common stock in connection with the transaction. Shareholders of more than 95 percent of Starwood shares present and voting at the meeting, representing more than 63 percent of outstanding shares, voted in favor of a proposal to approve the transaction. Under the terms of the new deal that was accepted on March 21, Starwood's shareholders will receive 0.8 shares of Marriott common stock and $21 for each share of Starwood common stock at a deal originally estimated to be worth $13.6 billion. This was a significant increase from the original deal both companies agreed to in November 2015, in which Starwood stockholders would receive 0.92 shares of Marriott common stock and $2 for each share of Starwood common stock., for an estimated $12.2 billion. The new deal represents a 15.4 percent increase over the original deal, and a difference in price of $1 billion, give or take. Marriott CEO Arne Sorenson, said in a statement, "With today’s successful stockholder approval milestone, we are that much closer to completing our transaction. Our teams continue to plan the integration of our two companies, and we are committed to a timely and smooth transition. We appreciate the stockholders' vote of confidence in our ability to drive long-term value and opportunity as a combined company." Starwood CEO Thomas B. Mangas said in a release, "Today’s vote is a significant step toward closing, and we are grateful for the continued enthusiasm and support for this merger. There is no doubt that this transaction puts our company on the best path forward and we remain excited about the opportunity this combination will create for our stockholders, associates, owners and guests." The total monetary value of the new merger deal will depend on the stock prices of both companies, but especially that of Marriott's. That stock price has fluctuated over the pa