The Chinese company Anbang has withdrawn its bid for Starwood Hotels and Resorts, leaving Marriott International the sole remaining bidder for the hotel chain.
A deal between Marriott and Starwood would create the the world’s largest hotel company.
After Marriott made its first bid to buy Starwood for $12 billion in November, Chinese insurer Anbang swooped in with a sweeter offer. But Anbang is pulling out of negotiations just days after offering $14 billion.
“We were attracted to the opportunity presented by Starwood because of its high-quality, leading global hotel brands, which met many of our acquisition criteria, including the ability to generate consistent, long-term returns over time,” Anbang said in a statement, but the company won’t pursue Starwood further due to “various market conditions.”
With Anbang out of the picture, Starwood may go for Marriott’s latest offer of a $13.8 billion buyout.
Starwood owns the Sheraton, Westin and W hotel chains, and Marriott’s brands include Courtyard and Ritz-Carlton.
Marriott and Starwood did not immediately respond to requests for comment.
Investors were not enticed by the pending deal. Starwood ( and )Marriott ( shares each shed more than 4% after the news broke Thursday evening. )
CNNMoney’s Cristina Alesci and CNN’s Clare Sebastian contributed to this report