In the third attempt, Germany’s largest housing group Vonovia is on target with the multi-billion dollar takeover of competitor Deutsche Wohnen.
(Photo: dpa)
Bochum Deutsche Wohnen is about to leave the leading index Dax. After the second acceptance period, Germany’s largest rental company Vonovia will hold 87.6 percent of the previous number two in the industry, as the company announced in Bochum. Deutsche Wohnen’s free float is therefore too small to be included in the index of the 40 most important listed companies in Germany.
In such cases, Deutsche Börse usually reacts within a few days. During the index reform in September, the Hamburg-based consumer goods manufacturer Beiersdorf just missed making it back into the Dax. He could now move up for Deutsche Wohnen.
Vonovia has so far spent around 17 billion euros on Deutsche Wohnen shares and is managing 568,000 apartments after the mega-merger of the two Dax groups. “We can now join forces to tackle the major societal and social challenges in the housing market,” said CEO Rolf Buch. “We stand by our responsibility to work together with politicians on specific solutions for affordable and climate-friendly living space.”
Buch had to tremble for a long time about the takeover, in the first attempt the industry giant even missed the desired majority. It was only when the Bochum group waived all conditions that it removed the basis of all speculations about failure. The Deutsche Wohnen shareholders should receive their money by next Tuesday (November 2nd), 53 euros per share.
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