Vonovia to fully acquire Deutsche Wohnen
Vonovia, Germany's largest residential landlord, plans to acquire all of Deutsche Wohnen shares.
The deal would create a real estate giant with over 500,000 apartments in Germany
Vonovia, Germany's largest residential landlord, has announced its intention to fully acquire Deutsche Wohnen, the country's second-largest residential landlord. The deal, which values Deutsche Wohnen at €19.1 billion, would create a real estate giant with over 500,000 apartments in Germany.
Vonovia's offer is hostile, as Deutsche Wohnen has already rejected it. However, Vonovia is confident that it will be able to gain the support of Deutsche Wohnen's shareholders, who are set to vote on the deal in April.
If the deal goes through, it would be the largest merger in Germany's real estate sector history. It would also give Vonovia a dominant position in the German residential market, with a market share of over 10%.
The deal has raised concerns among some analysts, who argue that it would create a monopoly in the German residential market. However, Vonovia has said that it is committed to competition and that it will continue to invest in its properties.
The deal is also likely to be closely scrutinized by Germany's antitrust authorities. The Bundeskartellamt, Germany's federal cartel office, is already investigating the merger and has the power to block it if it finds that it would harm competition.
The deal is a major test for Vonovia's chief executive, Rolf Buch. Buch has been the driving force behind Vonovia's growth in recent years, and if the deal goes through, he will have created one of the largest real estate companies in Europe.
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