Marriott raised its offer to buy Starwood Hotels and snatched it back from a huge Chinese insurer

Marriott has upped its offer to buyout Starwood Hotels after the latter received a bigger proposal from a group of companies led by the Chinese insurer Anbang.

In a statement Monday, Marriott said both companies amended their original agreement announced last November. Marriott would now offer Starwood shareholders $21 in cash and $0.80 shares of its stock for each Starwood share they own.

This values Starwood at $13.6 billion.

This comes after Starwood announced a binding, superior offer with Anbang on Friday that would have it acquired for $78 per share in cash, or $13.23 billion. Marriott had five days to respond.

Starwood is one of the world’s most valuable hotel chains with brands including Sheraton and the Westin.

Marriott CEO Arne Sorenson said the combined companies expect to achieve as much as $250 million in cost-saving synergies through the deal, which would create the world’s largest hotel chain.

Everything is still subject to shareholder approval.

Starwood shares rose 3% in pre-market trading.

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