Major Chinese Companies Bidding Over the Acquisition of U.S. Hotel Chain
Three Chinese companies are planning to place bids in acquiring Starwood Hotels & Resorts Worldwide Inc., which operates Sheraton, Westin and W hotel chains, in the biggest ever Chinese takeover of a US company. Hotel giant Shanghai Jin Jiang International Hotels Co Ltd. Hainan Airlines parent company HNA Group and sovereign wealth fund China Investment Corp. are in line for Starwood Hotels & Resorts.
The Chinese bids for Starwood is coming close on the heels of Anbang Insurance Group Co. acquisition of the Waldorf Astoria hotel in New York from Hilton Hotels and Resorts for $1.95 billion in 2014. According to market information provider Dealogic, if the Starwood deal would materialize it will be the largest acquisition of a US company by a Chinese firm. Until this day the largest deal done by a Chinese firm in the US is the purchase of pork producer Smithfield Foods Inc. by Shuanghui group for $ 7 billion in 2013. Starwood shares have jumped 9.1 percent or close to $74.81 per share that biggest daily increase since 2009, bringing its market value close to $12 billion.as of the moment Starwood is not providing any details on the bid.
But it was a different story for Shanghai Jin Jiang and HNA Group in the stock market. Shanghai Jin Jiang International Hotel Development Co.Ltd has been suspended from trading, while Hainan Airlines the list company of HNA Group fell 0.74 percent to 4.03 per share. Although all three interested bidders have declined to give ant comment, their ambition to have overseas expansion is evident.