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China: Marriott and Starwood grant extra time for antitrust review

By  |  August 8, 2016

The Chinese Ministry of Commerce requested, and Marriott and Starwood agreed to extend the regulatory review period to approve their proposed $12.2 billion merger to become the world’s largest hotel company.

The additional review period, known as phase three, could last for as long as 60 days. Originally, China had until August 9 as part of phase two, to pass judgment on the deal. Approval from China’s Ministry of Commerce is the only remaining merger clearance needed by both companies before they can close the deal.

Both companies’ shareholders approved the merger on April 8. Since the Marriott-Starwood merger was initially announced in November 2015, the companies have already received pre-merger clearance from other regulatory authorities in the US, EU, Canada, Chile, Colombia, India, Japan, Mexico, Pakistan, Saudi Arabia, South Africa, South Korea, Taiwan, and Turkey.

On Marriott’s second quarter earnings call on July 28, CEO Arne Sorenson said he was “optimistic that we will receive clearance from China and will complete the transaction in the coming weeks.”

Full Content: The Wall Street Journal

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