Vonovia’s plans to take over Deutsche Wohnen have hit the buffers after the latter’s shareholders failed to meet a minimum 50% acceptance threshold.
The merger would create a company with a portfolio of approximately 500,000 residential units and a €20bn market capitalisation.
Germany’s merger control authority, the Bundeskartellamt, last year cleared Vonovia’s takeover plans.
Rolf Buch, chief executive at Vonovia (formerly Deutsche Annington), said: “We extended an attractive offer to Deutsche Wohnen’s shareholders and received a lot of support from the market over the past few weeks.
“Today, we concede the number of tendered shares are not sufficient to conclude the transaction successfully.”
The deal, he said, “would have been a value-creating opportunity, further consolidating the market”.
Buch added: “We will continue on our established course, expanding our successful business model with a nationwide platform.”
In another move, Berlin-based Deutsche Wohnen, listed on Deutsche Börse’s MDAX, dropped its bid to take over LEG in September last year.
The deal would have created a €17bn real estate portfolio.
Vonovia’s takeover of Gagfah in late 2014 created a €21bn portfolio of around 350,000 residential units.