Germany's largest residential company Vonovia has received the green light from the competition authorities to become the biggest residential firm in Sweden.
The ok from Swedish officials means that Vonovia can now complete its acquisition of 69.3% of the voting rights (61.2% of the share capital) of listed firm Hembla from Blackstone.
After completing the deal, Vonovia will be required to launch a mandatory public offer for the remaining shares in Hembla. Both phases are expected to take place in November.
The move marks Vonovia's second step into the Swedish market after acquiring residential company Victoria Park in 2018.
Through Victoria Park's and Hembla's portfolios, Vonovia becomes the largest landlord in Sweden, owning around 38,000 residential units and gaining exposure to Sweden's three largest cities Stockholm, Gothenburg and Malmö.
Vonovia says it is committed to the Swedish market and will focus on expansion and further investment in Hembla's properties.
The housing giant currently owns around 395,600 residential units across Germany, Austria and Sweden. In addition, it manages around 78,350 apartments on behalf of third parties. In total, its portfolio is worth approximately €47.8 bn.
The Bochum-based company has been listed on the stock exchange since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed on the international indices STOXX Europe 600, MSCI Germany, MSCI Germany, GPR 250 and EPRA/NAREIT Europe.
