Marriott (MAR) is acquiring Starwood (HOT) in a merger deal worth $12.2 billion.
Marriott will lead following the merger of the two companies and its current CEO will remain the head of the company. Three executives from Starwood will be added to MAR’s board of directors following the deal, reports Reuters.
The merger of Marriott and Starwood will result in the largest hotel chain in the world with more than 5,500 hotels. HOT shareholders will receive 0.92 Class A MAR shares and $2 for each share that they own. The merger is expected to be completed about midway through 2016, Reuters notes.
“We became more convinced about the advantages of size by combining the two companies together,” Arne Sorenson, CEO of Marriott, told The Wall Street Journal. “We thought that would bring more options for customers and create a bigger loyalty program. We’d have the ability to compete better, invest in technology and stay front and center with customers.”
MAR share were down slightly and HOT shares were down 6% as of Noon Monday.
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