DTZ Zadelhoff and C&W end merger talks in the Netherlands

DTZ Zadelhoff and Cushman & Wakefield have ended talks on merging their businesses in the Netherlands.

The two property advisers will now continue to operate separate offices in the Netherlands about four months after DTZ Group and Cushman & Wakefield completed their merger on the international stage, with the combined group adopting the Cushman & Wakefield branding.

The 'completion' of the international DTZ-Cushman & Wakefield merger was announced on 2 September 2015. However, PropertyEU reported at the time that the merger had been 'put on hold' in the Netherlands as partners in DTZ's Dutch business, DTZ Zadelhoff, had not agreed on the terms of the tie-up. Both sides said in October that they were in negotiations to come to agreement on a merger in the Dutch market.

The talks have now ended without agreement. In a statement the two companies also said that recent publicity about the investigation of two valuations carried out by DTZ Zadelhoff 10 years ago 'had added an extra dimension to an already complex and time-consuming process, despite the confidence in a positive outcome.'


Comment
'A merger was never an end in itself, but it is unfortunate that we cannot achieve the desired cooperation,' Jeroen de Bruijn, chairman executive board of DTZ Zadelhoff, said in a joint statement with Cushman & Wakefield. 'You must honestly recognise that time as a factor is going to start working against you at some point, and that you can't leave your own people and clients in the dark for long about the future.'

De Bruijn said DTZ Zadelhoff would now continue 'with energy and confidence' to build on its market leadership with its strong brand. 'In addition, we have made good arrangements to continue to implement our international network, now and in the future,' he added.

Confirming the ending of the merger talks in the Netherlands on Monday, both parties said that they were in agreement that it was crucial in the short term for both sides to focus on their own priorities and that further delay in integration of the businesses would lead to uncertainty.

In a statement, the two companies said that a merger is an 'intensive process', wherein the success is largely determined by the base that is placed at the beginning. This facilitated the Dutch merger talks against the background of the comprehensive global integration, which successfully completed, the statement said.

Cross-shareholding
Some 75% of DTZ Zadelhoff is owned by partners with the remaining 25% held by DTZ Group (now Cushman & Wakefield). Part of Cushman & Wakefield's holdings comprise the interests acquired from DTZ Zadelhoff founder, Cor van Zadelhoff, who is not part of the group of partners who objected to the merger conditions.

The failure to agree merger terms with partners of the former DTZ family is noteworthy given that the merger stemmed from DTZ - supported by its owners, TPG, PAG Asia Capital (PAG) and Ontario Teachers’ Pension Plan - taking over Cushman & Wakefield.

Speaking for Cushman & Wakefield, EMEA CEO John Forrester said: 'Although the talks have ended, as a shareholder we remain positive about the strength of the Dutch market and the important role DTZ Zadelhoff plays in this market. This confidence is clearly confirmed by the fact that our owner has his expanded his interests (in DTZ Zaddlehoff) with the acquisition of the interest held by Cor van Zadelhoff.'