Germany's national competition regulator has given the green light to the bid by listed residential property number one, Vonovia, to acquire its nearest rival, Deutsche Wohnen, to create a colossus with more than 500,000 apartments and a market capitalisation of €20 bn.
Germany's national competition regulator has given the green light to the bid by listed residential property number one, Vonovia, to acquire its nearest rival, Deutsche Wohnen, to create a colossus with more than 500,000 apartments and a market capitalisation of €20 bn.
The Federal Cartel Office, or Bundeskartellamt, approved the proposed €14 bn share and cash offer without imposing any conditions, such as the need to divest assets.
Bundeskartellamt approval was an important pre-condition for Vonovia to press ahead with its share offer, which has been rejected by Deutsche Wohnen's board.
The tender offer was officially launched on 1 December and Deutsche Wohnen shareholders have until 26 January to tender their shares. Vonovia is offering seven of its shares and €83.14 in cash for every 11 Deutsche Wohnen shares. This values Deutsche Wohnen at €26.46 per share.
Vonovia announced on 7 December that it has secured approval from the Bundeskartellamt for its bid. The company said a merger would create a combined portfolio of more than 500,000 apartments and a market capitalisation of €20 bn.
As end-September 2015, Deutsche Wohnen's portfolio included more than 149,000 residential and commercial units with a fair value of around €10.7 bn. Vonovia's 370,000-unit portfolio was valued at €23.1 bn at the end of the third quarter.
A month later Vonovia's shareholders backed a capital increase needed to fund the €14 bn hostile takeover offer.
