DUESSELDORF: Europe’s biggest real estate takeover could fall through, at least for now, after Germany’s Vonovia warned on Friday that it likely had not secured the backing of enough shareholders in its target Deutsche Wohnen.
The deadline for Deutsche Wohnen shareholders to tender stock passed at midnight on Wednesday and Vonovia needs to collect at least 50 per cent of its rival’s shares for the deal to proceed.
Vonovia said the latest tally indicated it had only received commitments for 47.6 per cent. A final result is due Monday.
The deal would create a $22 billion property giant with 550,000 apartments.
“A combination of the two companies makes a lot of sense,” Vonovia Chief Executive Rolf Buch said in a statement. “Unfortunately, an insufficient proportion of the current shareholders of Deutsche Wohnen have turned in their shares.” The deal has been controversial in Germany amid tensions over soaring rents ahead of general elections in September. Executives have promised the merged company would work with politicians on providing affordable housing. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
