Starwood Hotels & Resorts Worldwide Inc on Friday said a $13 billion cash offer from China’s Anbang Insurance Group Co was superior to one from Marriott International Inc , setting the stage for the largest ever deal by a Chinese company in the United States. The operator of Sheraton and Westin hotels said the Chinese insurer’s offer beat Marriott’s previously agreed cash and stock offer by nearly 15 percent, and that it planned to scrap the proposed deal with the rival hotel chain.

Anbang has been on a U.S. hotel buying spree as Chinese insurers rush to acquire high-yielding assets as they struggle to keep up with the policy liabilities of the country’s aging population. U.S. assets are also seen as a good hedge against weakness in the Chinese yuan. READ MORE