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John Ross: China Regulator Would Reject Anbang`s Starwood Deal: Caixin

2016-03-24



A man walks into a branch of Anbang Insurance in Shanghai, China, 25 December 2015. [File Photo: ImagineChina]


It`s being reported that China`s insurance regulator will likely reject a bid by Anbang Insurance to buy Starwood Hotels and Resorts Worldwide.


According to report by Chinese financial magazine Caixin, the bid is reportedly above the insurer`s offshore asset threshold for overseas investments.


Starwood, owner of the Sheraton and Westin brands, on Monday accepted a sweetened 13.6 billion U.S. dollars acquisition offer from rival Marriott International, spurning Anbang Insurance Group`s latest bid.


The report also suggests China`s insurance regulator "clearly has an attitude of not supporting" Anbang`s bid.


In making the suggestion, the report says Anbang`s overseas investments have already reached a "red line," which is 15 percent of the company`s assets invested overseas.


For more on this, CRI`s Spencer Musick earlier spoke with John Ross, senior fellow with the Chongyang Institute for Financial Studies at Renmin University.


 


Key Words: China   regulator   insurance  

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