Anbang Withdraws Bid for Starwood

Group of investors led by the Chinese insurance company will no longer pay $14 billion, clearing a hurdle for Marriott merger.

The battle over Starwood Hotels and Resorts may have come to an end, as the investor group led by China’s Anbang Insurance Group will reportedly withdraw their $14 billion bid for the international hotel chain. Citing those close to the source, The Wall Street Journal reports the consortium has informed Starwood of their decision, clearing the way for a merger with Marriott International.

The withdrawal comes three days after Starwood acknowledged the higher bid by the investor group, potentially triggering another round of bidding. When Anbang valued the international hotel company at $82.75 per share, Starwood believed the revised offer could trigger a “superior proposal,” allowing them to explore the proposal and potentially break an agreement with Marriott for the second time.

In the days since, many began asking more questions about Anbang and their investment partners. Fortune reported the company already owned several properties, including the Waldorf Astoria New York and Strategic Hotels and Resorts. The New York Times painted the company as a “reclusive Chinese insurer,” questioning their rise over the past decade.

As Anbang retreats from what would have been the largest American acquisition by a Chinese company, the door remains open for Marriott to continue their planned merge with Starwood. In an increased bid delivered after the first Anbang proposal, the Maryland-based hotel operator agreed to pay $13.6 billion to add Starwood to their portfolio. Both companies are set to convene their shareholder meetings on April 6, with the goal of both groups confirming the merger.

Neither Marriott nor Starwood have publicly commented on the latest developments. However, stock prices for both companies have dropped in after-hours trading in the wake of The Wall Street Journal report.

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