By Maria Armental 
 

Germany's Vonovia SE has made a takeover offer for Deutsche Wohnen SE that would create Europe's largest residential real-estate group.

Under the preliminary terms of the deal, Deutsche Wohnen shareholders would receive 53.03 euros, including a proposed cash dividend. The executive and supervisory boards of Deutsche Wohnen support the offer, which is expected to be completed by the end of August.

"The market environment has become increasingly similar for Vonovia and Deutsche Wohnen in recent years," Deutsche Wohnen Chief Executive Michael Zahn said in a statement, adding: "Together we will create new perspectives for our employees, our tenants and our owners."

"The necessary investments in affordable housing, climate protection and new construction can be better shouldered together following the combination of the two companies," according to a statement disclosing the deal, which was earlier reported by Bloomberg News.

The companies are offering the state of Berlin an option to acquire "a significant number" of residential units from their portfolios.

 

Write to Maria Armental at maria.armental@wsj.com

 

(END) Dow Jones Newswires

May 24, 2021 18:43 ET (22:43 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Deutsche Wohnen (XE:DWNI)
Historical Stock Chart
From Dec 2021 to Jan 2022 Click Here for more Deutsche Wohnen Charts.
Deutsche Wohnen (XE:DWNI)
Historical Stock Chart
From Jan 2021 to Jan 2022 Click Here for more Deutsche Wohnen Charts.