RIYADH, 11 April 2006 — The US Federal Trade Commission (FTC) has approved plans by Kingdom Holding Company Chairman Prince Alwaleed ibn Talal to acquire Fairmont Hotels and Resorts for $3.9 billion.
The FTC’s approval of the acquisition was direct and confirms the non-discriminatory policy of the United States in welcoming foreign investors, especially Arab investors. The FTC’s approval re-affirms Prince Alwaleed’s longstanding strong relationship and presence in the United States.
In January of this year, Kingdom Hotels International announced that it would acquire Fairmont Hotels & Resorts Inc. for $3.9 billion, and it would merge with Raffles of Singapore making the combination equal to $5.5 billion. The deal will give a Canadian company two-thirds by affiliates of Kingdom Hotels International and one-third by Colony Capital Acquisitions, LLC, and they will acquire all of Fairmont’s outstanding common shares at $45.00 per share in cash.
“We’re delighted at the combining of Fairmont and Raffles, global leaders in high quality hotels...,” said Prince Alwaleed. “...this acquisition will expand our global presence in the hotels and resorts sector and reflects our commitment to seeking significant and prominent investments.”