Marriott International and Starwood Hotels and Resorts announced they have received unconditional clearance from the European Union for Marriott to acquire Starwood in a merger transaction.
"This is an important merger for the hotel industry and its customers,” said the European Commission’s Commissioner for Competition, Margaret Vestager. “Our investigation confirmed that the hotel sector will remain competitive for customers in Europe following the merger.”
For hotel accommodation services, the Commission investigation focused on the markets for four and five-star hotels, in which both companies have a significant presence.
In particular, the Commission investigated the impact of the proposed Marriott-Starwood acquisition in five cities, namely Barcelona, Milan, Venice, Vienna and Warsaw, where the combined market presence of Marriott and Starwood was strongest. In each of these cities, it was determined that the merged entity will continue to face effective competition from chain hotels and independent hotels.
For hotel management and hotel franchising services, the Commission investigated the impact of the proposed acquisition at the level of the European Economic Area.
The Commission found that the merged entity would face effective competition in Europe from a number of competitors on all those markets, including Accor, Hyatt, Hilton and IHG. The Commission therefore concluded that the proposed acquisition would raise no competition concerns.
The closing of the proposed merger is subject to obtaining additional antitrust clearances, including in China, and satisfying other customary closing conditions that are in the merger agreement. European Union clearance represents satisfaction of a major closing condition to the proposed merger.
Until legal close, the companies will continue to operate as separate and independent entities.
Stockholders of both Marriott and Starwood overwhelmingly approved proposals related to the transaction on April 8, and Marriott and Starwood anticipate closing the transaction in July 2016.
