Choice Hotels International has responded to antitrust concerns regarding its proposed takeover of Wyndham Hotels & Resorts. The hotel franchisor declared that a potential deal between the two companies would actually foster competition, countering Wyndham’s claims that it would attract antitrust scrutiny.
Negotiations Disrupted, Buyout Offer Presented to Shareholders
After negotiations between Choice and Wyndham’s boards regarding a potential merger collapsed, Choice has bypassed the board and presented a buyout offer directly to the shareholders. Last month, Wyndham urged its shareholders to reject the latest bid from Choice, asserting that it could result in a prolonged regulatory review and did not adequately evaluate the company’s worth.
Positive Progress with the U.S. Federal Trade Commission
Choice announced on Wednesday that it has been making headway in discussions with the U.S. Federal Trade Commission (FTC) concerning the deal. The company is optimistic about continuing to collaborate with the FTC during the second request process, which is projected to commence on January 11. Additionally, Choice anticipates finalizing the merger within one year.
Wyndham’s Industry Analysis Debunked
Patrick Pacious, the Chief Executive of Choice, stated, “Wyndham’s characterization of the lodging industry’s competitive landscape and relevant regulatory criteria is incorrect.” Pacious highlighted that Wyndham’s claims were misleading and clarified the company’s stance on the matter.