Germany’s merger control authority, the Bundeskartellamt, has cleared Vonovia’s plans to take over Deutsche Wohnen.

The combination would create a company with a portfolio of around 500,000 residential units and a €20bn market capitalisation.

Deutsche Wohnen shareholders have until 26 January next year to accept the offer and tender their shares.

Berlin-based Deutsche Wohnen, listed on Deutsche Börse’s MDAX, holds around 144,000 units, of which 141,900 are residential and 2,100 are commercial.

It failed in its attempt to take over Austria’s Conwert earlier this year, with shareholders in the latter rejecting the offer.

Deutsche Wohnen bought GSW Immobilien via a public takeover in 2013, creating a merged entity managing an €8.5bn property portfolio.

German residential specialist Vonovia, meanwhile, recently raised its forecast for 2015, with vacancy in its portfolio falling and rental income improving.

The company’s takeover of Gagfah late last year created a €21bn portfolio of around 350,000 residential units.