BRUSSELS (dpa-AFX) - A unit of Chinese conglomerate HNA Group has agreed to buy Carlson Hotels, the owner of the Radisson hotel chain, the two companies said Wednesday.
Financial terms of the transaction were not disclosed. But Bloomberg had earlier reported, citing people with knowledge of the matter, that the deal could be worth $2 billion. The acquisition is the latest in a wave of Chinese investments in foreign companies amid slowing domestic growth.
Under the terms of the deal, HNA Tourism Group Co. will acquire all of Carlson Hotels, including its approximately 51.3 percent majority stake in Rezidor Hotel Group AB. Rezidor is Carlson Hotel's master licensee based in Brussels, with hotels in Europe, the Middle East and Africa.
The transaction is expected to close in the second half of calendar 2016. David Berg, CEO of Carlson Hospitality Group will remain as CEO of the new organization.
The closing of the transaction will result in an indirect change of control in Rezidor. Under Swedish takeover rules, HNA Tourism Group would be obliged to launch a mandatory public tender offer for the remaining 48.7 percent stake in Rezidor within four weeks after the closing of the transaction, if the ownership in Rezidor is not sold down below 30 percent. Following closing of the deal, HNA Tourism Group will decide on its option.
Haibo Bai, HNA Hospitality Group chairman and CEO, noted that the acquisition will enable his company to establish its presence in the U.S. market and expand its footprint in hospitality internationally.
HNA Hospitality Group is the hotel management arm of HNA Tourism Group. As of March 2016, the group operates around 500 hotels with nearly 90,000 rooms, in key cities in China as well as other parts of the world.
Carlson Hotels is one of the world's largest hotel groups, operating 1,400 hotels in more than 115 countries and territories. In addition to Radisson, its portfolio includes Country Inns & Suites and Park Plaza Hotels. Carlson Hotels and its brands employ 90,000 people worldwide.
Among other major deals by Chinese companies, China's Dalian Wanda Group Co., Ltd. said in January that it has acquired U.S. film studio Legendary Entertainment for about $3.5 billion.
China's Anbang Insurance Group recently withdrew its takeover offer for Starwood Hotels & Resorts Worldwide, Inc., clearing the path for Marriott International, Inc. to proceed with its takeover bid.
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© 2016 AFX News
