Marriott International buys Starwood hotels in $12bn deal

Marriott International and StarHotels & Resorts Worldwideannounced on Monday that the two would merge to create the world’s largest hotel company in a deal worth $12 billion. The transaction involves Marriott buying the Starwood leading lifestyle brand to create a more comprehensive portfolio and

announced on Monday that the boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will create the world’s largest hotel company that offers guests more opportunies.

Together the companies would operate more than 5,500 hotels with 1.1 million rooms around the world.

The terms of the agreement give Starwood shareholders 0.92 shares of Marriott International, Inc. Class A common stock and $2 in cash for each share of Starwood common stock. Starwood shareholders would own approximately 37% of the combined company’s common stock after completion of the merger using fully diluted share counts as of September 30, 2015. The transaction is expected to close in the middle of 2016.