Current Affairs

Marriott-Starwood merger delayed by China

The $13.6bn (£9.5bn) merger of Marriott International and Starwood Hotels & Resorts is being delayed by China.

The two companies have announced that, at the request of the Chinese Ministry of Commerce (MOFCOM), they have agreed to extend the time period for MOFCOM to complete its review of the merger transaction.

This additional review period – known as phase three – could last up to 60 days.

In a joint statement, the companies said: “Marriott and Starwood continue to believe that their planned merger transaction poses no anti-competitive issues in China. Approval by China’s Ministry of Commerce is the only remaining merger clearance required before the transaction may close.”

Regulatory authorities in over 40 countries have already give the go-ahead for the deal, which will create the world’s largest hotel company with more than 5,500 hotels and 1.1 million rooms.

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