German real estate giants Deutsche Wohnen SE and Vonovia SE have signed an agreement to combine the two companies in a deal that will create Europe’s largest residential real estate group, with a market capitalization of €45 billion ($54.9 billion). The deal, announced May 24, is this year’s biggest takeover in Europe and the biggest ever in the region’s real estate sector.
Vonovia will launch a voluntary public takeover offer to all shareholders of Deutsche Wohnen. Shareholders will receive €52 in cash per share plus the cash dividend of €1.03 that is to be decided at the Annual General Meeting of Deutsche Wohnen in June. This takeover offer values Deutsche Wohnen at approx. €18 billion ($22 billion) (equity value). The combined company will operate under the name Vonovia SE.
The combined company will own more than 500,000 apartments with a real estate value of approximately €90 billion.
S&C’s long-standing client Deutsche Wohnen is one of the leading publicly listed residential property companies in Europe and Germany’s second-largest listed residential property company. Vonovia is Europe’s leading private residential real estate company.
The S&C team advising Deutsche Wohnen was led by Carsten Berrar and Konstantin Technau and included Frederick Eggert, Peter Klormann, Frederic Wuensche and Jannis Rink. Max Birke and Miriam Peter advised on finance matters. Michael Rosenthal and Axel Beckmerhagen advised on competition matters.
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