Marriott International has been informed by its merger target Starwood Hotels and Resorts Worldwide that a new offer from the Chinese company Anbang is better. Unless Marriott agrees to revisions of their merger agreement, Starwood will terminate the contract and sign with Anbang. Anbang is a Chinese holding company whose subsidiaries mainly deal with insurance, banking, and financial services.
Under the terms of the Marriott merger agreement with Starwood, Marriott has the right to propose revised terms and Starwood must negotiate in good faith with the company to discuss any such proposed revised terms, for a period that ends. If Starwood terminates the Marriott merger, it would have to pay Marriott a termination fee of $400 million in cash.
