As of: 28.06.2021 2:08 p.m.
The Federal Cartel Office has approved the merger of the two housing groups Vonovia and Deutsche Wohnen. Given the structure of the market, this does not affect competition.
The Federal Cartel Office has no objections to the merger of the two largest German housing groups Vonovia and Deutsche Wohnen. “The joint market shares of the companies do not justify a prohibition under competition law,” said the President of the Federal Cartel Office, Andreas Mundt, on Monday.
“No significant impairment of competition”
The provider structure for rental apartments is still very fragmented despite the large housing associations. Even if the housing situation in many large cities is tense, no significant impairment of competition is to be expected from the merger at local or regional level, according to Mundt.
The Bochum real estate group Vonovia is offering 18 billion euros for its Berlin competitor, which is also listed in the DAX stock exchange index. The merger, which Deutsche Wohnen also welcomes, would create Europe’s largest residential property group with more than 500,000 apartments.
In its takeover offer Vonovia is offering Deutsche Wohnen shareholders EUR 52 per share. The offer is limited to July 21, by which time Vonovia must acquire more than 50 percent of the shares. The group had already secured almost 22 percent in advance. The takeover should be completed by the end of August.