Marriott International Inc. (NASDAQ: MAR) cleared another hurdles of acquiring Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) as the shareholders of both companies voted to approve the revised merger agreement.
The shareholders of two companies voted at separate meetings Friday morning. Holders of more than 97% of Marriott shares present and voting at the meeting, representing over 79% of outstanding shares, voted in favor of the deal. Holders of more than 95% of Starwood shares present and voting at the meeting, representing over 63% of outstanding shares, also agreed with the deal.
Under the revised offer, Starwood shareholders will receive 0.8 shares of Marriott common stock plus $21 in cash for each share of Starwood common stock they own.
"With today's successful stockholder approval milestone, we are that much closer to completing our transaction," Marriott CEO Arne Sorenson said in a written statement.
This also means the end of bidding war between Marriott and China-based Anbang Insurance Group.
Marriott had a merger agreement with Starwood since November, with $2 in cash and 0.92 of its own shares for each Starwood share, representing a valuation of $12.2 billion at that time.
But Anbang offered an unsolicited takeover proposal with $13 billion all cash.
Then Marriott revised its offer with a higher price. It ended up that Anbang and its partners quit from its $14 billion bid “due to various market considerations.”
"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," said Starwood CEO Thomas Mangas.
Starwood shares rose 0.9 percent to $78.87 at 2:26 p.m. in New York. Marriot’s stock climbs 1.30 percent to $66.40.