The consortium lead by Anbang Insurance Group has withdrawn its proposal to acquire Starwood, paving the way for the Marriott/Starwood merger to move ahead. Anbang dropped its offer “as a result of market considerations” and does not intend to make another proposal, Starwood said in a statement.

The statement also said that Starwood’s board of directors continues to unanimously support the existing merger with Marriott. A special meeting of Starwood stockholders to vote on the merger – which would create the world’s largest hotel company – will go ahead as scheduled on Friday, 8 April.

“Throughout this process, we have been focused on maximising stockholder value now and in the future,” said Bruce Duncan, chair of Starwood’s board. “Our board is confident this transaction offer superior value for Starwood’s stockholders, can close quickly, and provides value-creation potential that will enable both sets of stockholders to benefit from future financial performance.”

Thomas B. Mangas, CEO of Starwood, commented: “We are excited to be part of the world’s largest hotel company with an unparalleled platform for global growth. The existing merger agreement provides substantial value to our stockholders through significant upfront cash consideration and long-term upside potential from projected shared synergies, including $250 million in cost synergies and significant revenue synergies, as well as ownership in one of the world’s most respected companies.”

Under the terms of Marriott’s most recent offer from 21 March , Starwood shareholders will receive US$21 (€19, £15) in cash and 0.80 shares of Marriott stock for each share of Starwood stock, for a total transaction value of approximately US$13.3bn (€11.7bn, £9.2bn).