Stockholders overwhelmingly approved Marriott International's $13.3 billion acquisition of Starwood Hotels & Resorts on Friday, a big step toward the formation of the largest hotel company in the world.
The companies said that holders of 97% of Marriott shares present and voting at the meeting (representing 79% of outstanding shares) voted in favor of the acquisition, and that 95% of Starwood shares present and voting (representing 63% of outstanding shares) voted to approve.
Marriott says the transaction is on track to close in mid-2016.
The stockholder vote follows a turbulent two weeks in March during which Marriott was challenged by Chinese company Anbang Insurance Group.
Marriott originally agreed to acquire Starwood for $12.2 billion in November, but a group led by Anbang swept in with a $13.2 billion bid, which was accepted by Starwood on March 18.
Marriott then boosted its bid to $13.6 billion a week later, which Starwood accepted (the value of the bid was revised to $13.3 billion after Marriott's stock price dropped).
Anbang responded with a $14.1 billion buyout offer on March 28, but Anbang withdrew the offer three days later, clearing the way for Marriott. Had Anbang kept its offer on the table and Starwood accepted it, Marriott would have bowed out, according to Chairman Bill Marriott (see video below of Travel Weekly Editor in Chief Arnie Weissmann's interview with Marriott at the WTTC Global Summit).
Marriott CEO Arne Sorenson, who will lead the combined company, said on Friday, “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.”