Vonovia wants to take over Deutsche Wohnen for 18 billion euros.
This would create Europe's largest real estate group.
Berlin / Bochum - A first takeover failed in 2016, now it should still succeed.
Vonovia announced on Monday evening that it wanted to take over Deutsche Wohnen, the second in the industry.
This time, nothing seems to stand in the way of the merger.
Because the top management of Deutsche Wohnen, who opposed a similar business five years ago, now welcomes the merger.
Germany's largest real estate company wants the takeover to cost 18 billion euros or 53.03 euros per Deutsche Wohnen share.
This corresponds to a premium of around 18 percent compared to the closing price on Friday.
To finance the takeover, Vonovia, which currently has a market value of around 30 billion euros, plans to issue new shares for up to eight billion euros.
Vonovia and Deutsche Wohnen want to merge: new group has real estate worth 90 billion euros
According to the information, the merger would create Europe's largest residential property group with a market capitalization of an expected 45 billion euros.
Despite a price slide of 13 percent since the beginning of the year, Vonovia is worth almost twice as much as Deutsche Wohnen, which rose by three percent.
The two largest German landlords bring it together to more than 500,000 apartments, the value of which is estimated at almost 90 billion euros.
The companies want to save costs by 105 million euros annually.
The savings target is to be achieved by the end of 2024.
Both parties have agreed that they will not issue any redundancies in connection with the transaction until January 1, 2024.
Vonovia and Deutsche Wohnen want to merge: the new company is called Vonovia SE
The merged company will be called Vonovia SE.
The headquarters are to be in Bochum, where the Vonovia headquarters are located.
The company is to be run from Bochum and Berlin, the headquarters of Deutsche Wohnen.
The offer is subject to a minimum acceptance rate of 50 percent of all outstanding Deutsche Wohnen shares, the granting of merger control approval “and other customary conditions”.
Both companies expect the merger control approval to take place before the end of the acceptance period for the planned takeover offer.
List of rubric lists: © Marcel Kusch
