Is China Holding the Marriott-Starwood Deal Hostage?
Photo Credit: Pictured is the Sheraton Huzhou Hot Spring Resort. Starwood Hotels has a significant presence in China, and its pending acquisition by Marriott awaits antitrust clearance from Chinese regulators. Starwood Hotels & Resorts
Skift Take
In China, anything is possible when it comes to antitrust clearance and there are a number of potential reasons why regulatory authorities there extended their review of the Marriott-Starwood merger. This prolonged waiting game could be part of a larger strategy to extract concessions and finish off part of what Anbang started in March.
Just when it appeared as though the Marriott-Starwood deal was well on its way to finally being completed, another roadblock has emerged.
On August 8, both companies announced that the Ministry of Commerce of the People's Republic of China (MOFCOM), the entity responsible for reviewing and granting antitrust clearance in China, had asked them for more time — up to 60 more days — to review the deal.
China's request for an extended review period is something both companies couldn't really refuse. Refusal would result in the prevention of closing their already lengthy merger transaction, so they agreed to grant an extension of up to 60 days as part of a phase three review.
Is this sort of delay a common occurrence when it comes to antitrust approvals? Yes, and no.
With the recent merger of AB InBev and SAB Miller, two of the world's largest beer companies, for example, China was the last country to grant antitrust clearance. "China takes a long time to grant antitrust clea
